In managerial decision making, when one can estimate the likelihood of various consequences but still does not know with certainty what will happen, he or she is facing
A) irresolution.
B) maximization.
C) risk.
D) optimization.
E) framing effects.

Question

Quizplus · Accepted Answer

When a manager can estimate the likelihood of various consequences but still does not know with certainty what will happen, he or she is facing risk. Risk is the probability of an event occurring and the consequences associated with that event. Managers often have to make decisions in uncertain environments where there is a degree of risk involved.

In Managerial Decision Making, When One Can Estimate the Likelihood