Which is a valid method for making forecasts from time series data like sales volumes or…
- Which is a valid method for making forecasts from time series data like sales volumes or securities prices?
- Logical argumentation
- Astrological projection
- Exponential Moving Average
- Factorial regression
- What kinds of decisions are decision matrixes less helpful for making?
- Decisions that must be made quickly
- Decisions regarding ethics, beauty or harmony
- Decisions for which there is a lot of objective information
- Decisions which you have plenty of time to deliberate on
- What’s the main lesson of the Prisoners’ Dilemma?
- Cooperate only if the other party cooperates, else defect (cheat)
- Two completely rational individuals might not cooperate, even if it appears that it is in their best interests to do so
- Generally, it’s better to cop a plea
- It’s always better to cheat if that makes you better off
- Professor W teaches finance and entrepreneurship. The total number of sections he teaches must not exceed 4 and he cannot teach more than three sections of each class. He wants to maximize the total number of students he teaches. Each finance class has 40 students and each entrepreneurship has 30 students. How many of each section should Professor W teach?
- 2 Finance, 2 Entrepreneurship
- 0 Finance, 4 Entrepreneurship
- 4 Finance, 0 Entrepreneurship
- 3 Finance, 1 Entrepreneurship
- Why is risk different from uncertainty?
- Risk is qualitative and uncertainty is quantitative
- Risk is harder to manage because it cannot be insured
- Risk is easier to model because the distribution of outcomes is known
- Risk can cause losses; uncertainty does not
- Put the following systems in order from least predictable to most predictable.
Deterministic (e.g., the amount of time it takes to take the elevator from the ground floor to the seventh floor)
Uncertainty (e.g., stock market returns)
Risk (e.g., winnings from playing poker)