What Is Intuition? What Are Its Major Implications in Decision

question 106

Essay

What is intuition? What are its major implications in decision making?

Recognize and define plant assets, including their characteristics and role in business operations.

Identify and apply changes in accounting estimates and their effects on financial statements.

Calculate depreciation expenses using different methods, including the impact of changes in asset estimates (useful life and salvage value).

Analyze the concepts of asset inadequacy, obsolescence, and the factors influencing these conditions.

---

Definitions:

Expected Return

The anticipated profit or loss from an investment, considering all possible outcomes and their probabilities.

Systematic Risks

Risks that impact the entire market or economy, often unavoidable by diversification.

Diversified Portfolio

An investment strategy that spreads investments across various assets to reduce risk.

Standard Deviation

A statistical measure of the dispersion or variability within a data set, often used to quantify the risk associated with a variable’s average value.