Teaching risk analysis.
The primary objective of this article is to present a method of risk analysis that can be taught by instructors of health service financial management as part of the discussion of the concepts of risk. First, the implications of risk and the need for risk analysis are discussed. Based on the theory of cumulative probability distributions, two criteria for capital investment decision making under risk are presented, and practical examples of how the criteria can be applied are provided. The paper concludes with a discussion of the limitations of the method of risk analysis and the educational implications of the method.
D003657:Decision Making; D005376:Financial Management / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D006739:Hospital Administration / Q000193:education*; D006801:Humans; D007449:Investments; D012308:Risk Management / Q000379:methods*; D013269:Stochastic Processes; D013663:Teaching / Q000379:methods*; D014481:United States