Good Example Of Answering Question Essay

Risk adverse manifests itself as opposition to risky activities by an individual. It means an attitude to risk, which comes to the non-recognition of its values and roles. Risk averse is featuring characteristic of Homoeconomicus, which refers to the mental power of man to create effective means of resistance to the risk in order to raise profits or gain another benefit. Economists suppose that most of people tend to adverse the risks. At the same time some individuals are rather neutral to risks. The risk neutrality means that the marginal utility is constant, so a person disregards whether he will get the same profit with less or higher probability. Practical results show that a timely evaluation of risks and the quality of measures for their neutralization and minimization enable enterprises to reduce losses and even to avoid some of them. Any business, personal, or academic processes of decision-making are associated with risks. The results of implementation of the particular decision depend on the right evaluation of risks sensitivity.
The essence of decision theory refers to choosing the best solution from the set of possible alternatives that may lead to maximization of the expected benefits. The concept of decision making can be applied through evaluation of benefits and losses associated with particular decisions and finding the optimal plan of usage available resources in order to increase profits and decrease losses.
Gideon estimated that the risk imposed by opponents was higher than God thought. That is why he had ten thousand people remained. God stated that three thousand people were enough. Such a decision arises from the optimizing the number of resources involved in order to get the maximum result – the victory. As for me the army was protected by Lord that meant almost 100% probability of victory. In real practice I would better deliver all the army in order to minimize the risk of losing.
Agrippa was to judge Paul or persuade his innocence. Paul was happy before meeting Lord. After meeting he believed more in the good decision of Agrippa. Surely the relations with Lord will challenge me to estimate the decisions and actions that I have taken more thoroughly.