1. Caspar provided a hypothetical game which offered a positive expected payoff. He related this to poker and other decisions under uncertainty. What did you take away from this example and how could it be applied to business?
2. Should all decisions under uncertainty be based on expected value? Explain.
3. One strategy for forecasting was to provide a possible range (Example of economic forecast). What are the benefits to doing this?

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1 Caspars hypothetical game with a positive expected payoff The key takeaway from Caspars example is the importance of considering expected value when making decisions under uncertainty as is often th... View the full answer