GM 543 Week 9 Assignment

GM 543 Week 9 Assignment | Franklin Pierce University | Assignment Help

Politics as a Business

In a 1 to 2 page single spaced analysis discuss the following problem. In addition, please use the concepts from our text chapter on making decisions with uncertainty to address the issue:

Global Warming:

To minimize expected error costs, take action if and only if
(1-p)*(Error Cost I) < p*(Error Cost II). Most of the policy debate concerns the probability that Global warming will occur, p, and the size of the Error Costs. Since the costs of taking action are incurred in the present; and the costs of inaction are incurred only in the future, benefit-cost analysis requires a discount rate. A small discount rate favors action. A big discount rate favors inaction.

Submit as a single Word or Word readable paper.