In decision making under ________, there are several possible outcomes for each alternative, and the decision maker does not know the probabilities of the various outcomes.
A)risk
B)utility
C)certainty
D)uncertainty

Question

Quizplus · Accepted Answer

In decision making under uncertainty, the decision maker lacks complete information about the outcomes of each alternative. Therefore, there are several possible outcomes for each alternative, and the decision maker does not know the probabilities of the various outcomes. In this context, the best choice is to employ decision-making techniques that can help to assess and manage the risks associated with each alternative. These techniques include sensitivity analysis, scenario analysis, and Monte Carlo simulation, among others. By using such techniques, decision makers can gain a better understanding of the potential outcomes and make more informed decisions.

In Decision Making Under ________, There Are Several Possible Outcomes