Agree or Disagree and Why?
To assess whether or not a decision maker is a risk taker orrisk avoider is completely relative to the context of the decisionbeing made. For instance, if make an investment in a start upcompany, I am taking a risk because there is a large possibilitythat I may take a loss on my investment. On the other hand, I choseto take a different route to work because that is one safer thanthe one most traveled, then I am avoiding the risk of a wreck orinjury. The three decision making without probabilities approachesoutline in a our textbook are the Optimistic approach, ConservativeApproach, and Minimax Regret Approach. As with the context of thedecision to be made, each one of these has to fit the context inorder to make sense. For instance, the optimistic approach placesvalue on the highest payoff, conservative approach looks at worstpayout, and minimax regret approach is where one would choose thedecision alternative that minimizes the maximum state of regretthat could occur over all possible states of nature.
