Risk exists when
A)all possible outcomes are known but probabilities can't be assigned to the outcomes.
B)all possible outcomes are known and probabilities can be assigned to each.
C)all possible outcomes are known but only objective probabilities can be assigned to each.
D)future events can influence the payoffs but the decision maker has some control over their probabilities.
E)c and d

Question

Quizplus · Accepted Answer

Risk involves situations where all possible outcomes are known and probabilities can be assigned to each outcome, allowing for the calculation of expected values and informed decision-making.

Risk Exists When