risk assessment in decision making
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Your manager, Jim, presents you with two specific issues and wants you to submit a memo with your answer.
Question 1: Jim is about to purchase a piece of office equipment at the local office supply store. He just received a flyer that another store across town has the item for $1,024.99. He was planning on spending $1,050.95 for it. Would you agree that he should drive across town to purchase the item at the other store? (Be very specific in your response, and use some of the concepts of risks and axioms from the readings).
Question 2: He is about to purchase a piece of office equipment at the local office supply store. He just received an e-mail that a store across town has the item for $9.95. He was planning on spending $19.95 for it. Would you agree that he should buy it from the store across town? (Be very specific in your response, and use some of the concepts of risks and axioms from the readings).
Would your answers change if all these stores were online stores? Why?
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