Explain Errors Odds Error Value Impact Ability Make Rational Decision Q34303807

Explain how errors in odds and error in value can impact theability to make a rational decision.

Expert Answer

Errors in odds are the errors that can happen in odds which canbe either overestimated or underestimated, while Error in value arethe errors which are measured by the past performances instead ofpossibilities.

These errors can impact the ability to make a rational decisionas :

a. They do not compare to the possibilities and net results,instead decisions are made upon past experiences.

b. Data that is not relevant or historic data used can impactthe ability to make rational decision.

c. Not recognizing the opportunities due to concentrating