On the Bayes Risk Decision-making Analysis

Min Wang

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Decision-Making and Behavioral Economics Probability and Statistical Research Capital Investment and Risk Analysis

Abstract

It has risks engaging an economic activity.Before making an economical decision,we should pay great attention to its risk analysis.This paper applies the theory of Bayes to economic activities,and summarizes basic principles of the Bayes theory,and proposes the steps and the method in applying the Bayes theory based on a concrete case.

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