1. The right to abandon is a valuable option used to manage risk. Where in business do you see the right to abandon?
2. Decision trees force managers to conduct contingency planning, why is this important in measuring and managing risk?
3. Three methods for developing probability estimates (not decision models) were discussedin "Capital Budgeting and Long-Term Financing Decisions, 4th Edition", what are they and which of these is most common in practice?