Theory (Week 10) Flashcards
1
Q
A
2
Q
Name 2 limitations of Expected Values with NPV
A
- Investment is a one-off
- EV assumes situation is repeated
- EV are based on subjective probabilities
- EV are a weighted average of the outcome
- Ignore potential spread of the possible outcomes
3
Q
What’s a downside to market research?
A
Doesn’t actually match people’s buying habits.
4
Q
What’s predictive analysis?
A
The use of social media and industry to predict future outcomes.
5
Q
What’s prescriptive analysis?
A
Social media + industry trends + Ai to identify optimum business decisions.
