When faced with decision circumstances in which the information is incomplete,yet one can still reasonably estimate probabilities for the outcomes of various options,the environment is said to be a(n):
A) risk environment.
B) certain environment.
C) uncertain environment.
D) programmed environment.

Question

Quizplus · Accepted Answer

A risk environment refers to circumstances in which the information is incomplete, but one can still estimate probabilities for the outcomes of various options. In this environment, there is a known distribution of possible outcomes and a reasonable estimate of their likelihoods, allowing for informed decision-making. In contrast, an uncertain environment refers to circumstances in which the information is incomplete and probabilities cannot be estimated, making decision-making more difficult. A certain environment refers to circumstances in which the information is complete and the outcome of each option is known with certainty. A programmed environment is one in which decisions are routine and well-defined, with clear procedures and guidelines for decision-making.

When Faced with Decision Circumstances in Which the Information Is