Decision- Making Conditions (Scenario)
Sabah is the manager for CaterersRUs, a medium- sized catering company. She is responsible for initiating new client contacts, and staffing both existing and new assignments. She is currently struggling with existing information about the profitability of existing and future clients.
-Rasheed, Sabah's best assistant, tells her that he believes he can estimate that there is a 75 percent probability that they can get the business of Salam Brothers, Inc., if they initiate a new service outside the city. Rasheed is operating under a condition of ____________ .
A) certainty
B) maximax
C) risk
D) uncertainty

Question

Quizplus · Accepted Answer

Rasheed is operating under a condition of risk because he has estimated a probability for the potential outcome. However, the exact profitability of the new service and client is still uncertain, as it has not yet been obtained.