BUSI 620 MENTOR It's Your Life/busi620mentor.com BUSI 620 MENTOR It's Your Life/busi620mentor.com | Page 41
precise methods of dealing with uncertainty ? When are these useful ?
Discussion Question 15 : How does the adverse selection problem arise in the credit-card market ? How do creditcard companies reduce the adverse selection problem that they face ? To what complaint does this give rise ?
Spreadsheet Problem 1 : An individual has to choose between investment A and investment B . The individual estimates that the income and probability of the income from each investment are as given in the following table .
Investment A Investment B Income Probability Income Probability 4,000 0.2 4,000 0.3 5,000
precise methods of dealing with uncertainty ? When are these useful ?
Discussion Question 15 : How does the adverse selection problem arise in the credit-card market ? How do creditcard companies reduce the adverse selection problem that they face ? To what complaint does this give rise ?
Spreadsheet Problem 1 : An individual has to choose between investment A and investment B . The individual estimates that the income and probability of the income from each investment are as given in the following table .
Investment A Investment B Income Probability Income Probability 4,000 0.2 4,000 0.3 5,000