ABSTRACT
We all want to maximize our gains and minimize our losses, but decisions have uncertain outcomes. What if you could choose between an expected return of $1000 with no chance of losing any amount, or an expected return of $5000 with a chance of losing $50,000. Which would you choose? The answer depends upon how risk-averse you are. Many would happily take the nearly certain $1000, and some would take the risk with hope of greater profit. This chapter is concerned with how to extend mathematical programming models to deal with such uncertainty.
