1. Explain in your own words why it is important to keep track of what information is known and what events are still uncertain for each decision.
2. What alternatives other than specific protection strategies might Larkin Oil consider (for example, insurance)?
3. Imagine the difficulties of an employer whose decision context is choosing a new em ployee from a set of applicants whom he will interview. What do you think the em ployer's objectives should be? Identify the employer's specific decisions to make and uncertainties, and describe the relevant uncertain events. How does the problem change if the employer has to decide whether to make an offer on the spot after each interview?