The Value of Imperfect Information

This set of exercises consists of two exercises, "Averías, S. A." and "Petróleos, S. A.," which show, (in a simple but at the same time practical and real) way, how to incorporate new information into the decision-making process. The two exercises raise probability problems to which the Bayes Theorem must be applied. ¿Averías S.A.¿ is inspired by the ¿Bayes¿ case by Steven Lippman. ¿Petróleos S.A.¿ is based on the case of the same name by Professor Pere Agell.
Collection: IESE (España)
Ref: ADE-37-E
Format: PDF
Number of pages: 2
Publication Date: Apr 27, 2018
Language: English, Spanish

Description

This set of exercises consists of two exercises, "Averías, S. A." and "Petróleos, S. A.," which show, (in a simple but at the same time practical and real) way, how to incorporate new information into the decision-making process. The two exercises raise probability problems to which the Bayes Theorem must be applied. ¿Averías S.A.¿ is inspired by the ¿Bayes¿ case by Steven Lippman. ¿Petróleos S.A.¿ is based on the case of the same name by Professor Pere Agell.
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Learning Objective

Both exercises are usually used together in a 75-minute session on updating information.

The Value of Imperfect Information

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"The Value of Imperfect Information"