Decisions Under Uncertainty Decisiones Bajo Incertidumbre

Download or read book Decisions Under Uncertainty (Decisiones Bajo Incertidumbre). written by Ignacio Velez-Pareja and published by . This book was released on 2007 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a course material from the book Managerial Decision Making Under Risk and Uncertainty. The book is originally in Spanish and is untitled as Decisiones empresariales bajo riesgo e incertidumbre. The level of the book is basic. We use very few mathematics and it is expected to be used by managers.In this third chapter we deal with the idea of uncertainty (not having a probability distribution assigned to the events). We use the basic ideas of game theory to introduce the reader into the strategies when dealing with uncertainty. We illustrate the different approaches in game theory: minimax, maxmax, minimum regret, Laplace method, etc. We also present a simple method to estimate the probability of an outcome and one method to estimate a subjective probability distribution.