Managerial Economics

  1. Risk, Uncertainty, and Decision-Making
    1. Defining Risk and Uncertainty
      1. Distinction between Risk and Uncertainty
        1. Types of Risk
          1. Business Risk
            1. Financial Risk
              1. Systematic vs. Unsystematic Risk
              2. Sources of Uncertainty
                1. Market Uncertainty
                  1. Technological Uncertainty
                    1. Regulatory Uncertainty
                  2. Measuring Risk
                    1. Probability Distributions
                      1. Discrete Distributions
                        1. Continuous Distributions
                          1. Probability Density Functions
                          2. Expected Value
                            1. Calculation and Interpretation
                              1. Weighted Average Outcomes
                              2. Measures of Dispersion
                                1. Variance
                                  1. Standard Deviation
                                    1. Coefficient of Variation
                                    2. Higher Moments
                                      1. Skewness
                                        1. Kurtosis
                                      2. Attitudes Toward Risk
                                        1. Risk Aversion
                                          1. Diminishing Marginal Utility
                                            1. Risk Premium
                                            2. Risk Neutrality
                                              1. Risk Seeking
                                                1. Utility Functions
                                                  1. Expected Utility Theory
                                                    1. Certainty Equivalent
                                                  2. Decision-Making Under Risk
                                                    1. Expected Value Criterion
                                                      1. Expected Utility Maximization
                                                        1. Decision Trees
                                                          1. Structure and Components
                                                            1. Probability Assessment
                                                              1. Rollback Analysis
                                                              2. Sensitivity Analysis
                                                                1. Scenario Analysis
                                                                2. Decision-Making Under Uncertainty
                                                                  1. Maximin Criterion
                                                                    1. Maximax Criterion
                                                                      1. Minimax Regret Criterion
                                                                        1. Laplace Criterion
                                                                          1. Hurwicz Criterion
                                                                          2. Information and Decision-Making
                                                                            1. Value of Information
                                                                              1. Expected Value of Perfect Information
                                                                                1. Expected Value of Sample Information
                                                                                2. Bayesian Decision Theory
                                                                                  1. Prior and Posterior Probabilities
                                                                                    1. Bayes' Theorem Applications
                                                                                  2. Risk Management Strategies
                                                                                    1. Risk Avoidance
                                                                                      1. Risk Reduction
                                                                                        1. Risk Transfer
                                                                                          1. Insurance
                                                                                            1. Hedging
                                                                                              1. Derivatives
                                                                                              2. Risk Retention
                                                                                                1. Diversification
                                                                                                  1. Portfolio Theory
                                                                                                    1. Correlation Effects
                                                                                                  2. Simulation Analysis
                                                                                                    1. Monte Carlo Simulation
                                                                                                      1. Steps in Simulation
                                                                                                        1. Applications in Business
                                                                                                          1. Advantages and Limitations

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                                                                                                        12. Capital Budgeting and Investment Decisions