When the decision maker must consider several possible outcomes for each alternative,each with a given probability of occurrence,this is decision making under
A)certainty.
B)uncertainty.
C)risk.
D)duress.

Question

Quizplus · Accepted Answer

When the decision maker must consider several possible outcomes for each alternative, each with a given probability of occurrence, this is decision making under risk. In this case, the decision maker has some information about the likelihood of each outcome, but cannot be certain about the final outcome. This type of decision making requires the decision maker to weigh the probabilities and potential outcomes of each alternative before making a decision.

When the Decision Maker Must Consider Several Possible Outcomes for Each