What Is 'Quantitative Research

question 8

Essay

What is 'quantitative research'?

Interpret and calculate expected profits under varying states of nature.

Understand the differences between EMV and EOL approaches in decision making.

Develop the ability to convert payoff tables to opportunity loss tables for decision analysis.

Analyze the impact of different scenarios on business decisions using probability assessments.

---

Definitions:

Perfect Competitor

A theoretical market situation where numerous small firms compete against each other with no single company controlling the market price.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues, indicating the total financial gain.

Accounting Profits

The net income for a company after all expenses, taxes, and costs have been subtracted from total revenue.

Economic Profits

The excess of total revenue over total cost, including both explicit and implicit costs, indicating the efficiency of resource utilization beyond breakeven.