Prospect Theory

LBO
9:38:12 PM beyoni: wei u know anthing about LBO?
9:40:28 PM Cheung: leveraged buy out law
9:40:35 PM beyoni: hai ar = = ”
9:40:37 PM beyoni: thanks wor.

9:38:35 PM beyoni: wt kind of industry/company u think is attractive?
9:39:25 PM littleyih: areospace exploring company
9:39:40 PM beyoni: y = =
9:40:02 PM littleyih: because there is no way this company wont make money eventually
9:40:12 PM beyoni: but its very uncertain bor
9:40:17 PM beyoni: R&D needs a lot of money
9:40:27 PM beyoni: the return of such investment is very uncertain
9:40:55 PM littleyih: no lor how can u live without progress in outer space ne
9:41:22 PM beyoni: ok..
9:41:24 PM beyoni: thank you~
9:42:09 PM beyoni: really
9:42:13 PM beyoni: i would invest in clean energy
9:42:18 PM beyoni: coz one day all oil will use up
9:42:22 PM littleyih: that’s the same thing ya
9:42:26 PM littleyih: i would consider that too
9:42:38 PM littleyih: but ultimately every resource would be used
9:42:45 PM littleyih: so if ur is long run
9:42:46 PM beyoni: no la
9:42:51 PM littleyih: mine is long long long run
9:42:51 PM beyoni: clean energy = wind energy ar
9:42:54 PM beyoni: solar energy ar
9:43:06 PM littleyih: solar energy is not like infinity too = =
9:43:14 PM littleyih: one day the sun will die
9:43:25 PM beyoni: by the time sun die
9:43:28 PM beyoni: there will no human
9:43:32 PM littleyih: hahahaha
9:43:32 PM beyoni: no NASDAQ and stock market la
9:43:37 PM beyoni: -_-
9:43:49 PM littleyih: be faithful

Professor Ch.

I truly blushed o> <o when I got this email from Pearson Education..
since when I am added to their Economics Professor mailing list? :3

Health.
recently i faint more frequently than usual … it has been around for 3 years.
so I finally decided to tell my parents about it and did blood testing with MIT medical.
Responses I got:
Dad: “不懂平衝自己生活的人..I pointed out before:self and time management是自發的，無得教，請自重”
Dad:“”世事無絕對只有眞情趣”
xg: “i think if u can bear the consequence then it’s ok, but i think ur body is somehow telling u u cant”

How to determine your specialty? What are you good at?
I never know what I am good at…I am those 周身刀無張利 type of “generalist”
“Will you ask your math major friend to help you with your maths homework?
Will you ask a lawyer friend to help proofread your essay?
Will you ask a medicine student about your health problem?”
what kind of questions you got asked always?
that’s exactly what makes you special/valuable!!
How about you? What do you get asked/頼まれる frequently?

Decision Frame.
just did an interesting experiment in class on decision framing effect! in the case below, Program A, B = Program C,D but the wording is a bit different…try it!! :)

Imagine that the U.S. is preparing for the outbreak of an unusual Asian (Why asian?!)  disease, which is expected to kill 600 people. Two alternative programs to combat the disease have been proposed. Assume the exact scientific estimate of the consequences of the programs are as follows.”

The first group of participants were presented with a choice between programs:

• Program A: “200 people will be saved”
• Program B: “there is a one-third probability that 600 people will be saved, and a two-thirds probability that no people will be saved”

(I myself chose A too) 72 percent of participants preferred program A

The second group of participants were presented with the choice between:

• Program C: “400 people will die”
• Program D: “there is a one-third probability that nobody will die, and a two-third probability that 600 people will die”

In this decision frame, only 22% prefer Program C ..which is actually Program A