If the decision maker has no knowledge about the likelihood of any of the states of nature occurring, then it can be stated that the decision maker is operating in an environment of
A) certainty.
B) uncertainty.
C) risk.
D) optimism.

Question

Quizplus · Accepted Answer

If the decision maker has no knowledge about the likelihood of any of the states of nature occurring, then it can be stated that the decision maker is operating in an environment of uncertainty.

If the Decision Maker Has No Knowledge About the Likelihood