1. Briefly explain why we must consider uncertainty when making business decisions and how uncertainty interacts with people's risk preferences.
2. The COVID-19 crisis was a big shock and impacted everyone's lives in one way or another. Discuss how you think people's perception of uncertainty has changed post COVID-19.
   • • Use the theories and models discussed in the book in your answer. Hint: Consider how people's attitudes toward risk can change and how people's measurement of risk (i.e., probabilities of an event happening) might not necessarily be the same across different people (see section 15.4 in the book). Feel free to use other references to make your case.
3. When understanding the United States Economic outlook, there are currently three main sources of uncertainty: (1) the High inflation rate, (2) the Fed changes in the Interest rate, and (3) the looming possibility of a recession. Taking the position of a manager making decisions regarding business investment in this environment, discusses in detail how you would consider these three uncertainties and how that would affect your decisions. Highlight if you believe you are acting as a risk-taker, risk-averse, or risk-neutral person and why?
   • (Hint: a good answer will take the information available in the news or other reference to assess the probability of each of these situations, or what is expected for the future, to answer the question).