If management is making a decision under certainty, the certainty is related to the __________ , making the final decision ____________.
A)payoff amounts; unimportant
B)states of nature; almost trivial
C)decision alternatives; depending on the state of nature
D)states of nature; important
E)payoff amounts: almost trivial

Question

Quizplus · Accepted Answer

When management is making a decision under certainty, it means that the outcomes of all possible actions are known. Therefore, the uncertainty or "states of nature" are not a concern, making the decision-making process almost trivial since the outcomes are certain.

If Management Is Making a Decision Under Certainty, the Certainty