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Decisions under risk

Unit 11: Quantitative AnalysisTopic 3 of 4
Browse the Business Statistics syllabus

Business Statistics

13 units
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What the syllabus expects

  • Expected profit or expected monetary value
  • Expected profit with perfect information
  • Expected value of perfect information

Decisions under risk

Bachelor of Business Studies (BBS) — First Year

Subject: Business Statistics (MGT 202)

Unit 11: Quantitative Analysis

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of decisions under risk.
  • Select suitable statistical procedures, carry out calculations and interpret business results.

Curriculum Scope

  • Expected profit or expected monetary value
  • Expected profit with perfect information
  • Expected value of perfect information

Detailed Microsyllabus

  1. Decisions under risk

    1. State probabilities and payoff or profit tables.
    2. Calculate expected monetary value or expected profit.
    3. Select alternatives using the stated objective.

  2. Value of perfect information

    1. Expected profit with perfect information.
    2. Expected value of perfect information as the gain over the best current decision.
    3. Interpret the maximum value of eliminating uncertainty.

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 14-16.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here.