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Discussion: desicion with incomplete data
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FabienneB |
desicion with incomplete data
Sep 13 2008, 4:10 PM EDT
We learned that choices are made based on three basic economic questions:What should be produced? How should things be produced? Who should things be produced for? One inherent problem of this decision is that it has to be made without sufficient information. Otherwise the market would be efficient. If, for instance, every farmer in an area is producing patatos and the weather is too cold then the entire production can be lost. Maybe producing corn would not have been as promising but corn might not have been as depending on the weather. So the conclusion is that to make a perfect decision is only theoretical concept and a function of the information available. 0 out of 2 found this valuable. Do you?
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NicholasBurnham |
1. RE: desicion with incomplete data
Nov 16 2008, 8:43 AM EST
That's the problem with theorems of any kind. The idea is that we will probably never be able to record every single piece of data related to an event, so we can only speculate. Theorems help us do that accurately. All we can do is take into account all the factors with the most influence and hope that we get lucky.
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