Managers in the field of biotechnology know that new drugs have a 10 percent chance of passing advanced clinical trials and always assign probabilities to the results of clinical trials. This is an example of
A)risk.
B)uncertainty.
C)bounded rationality.
D)incomplete information.

Question

Quizplus · Accepted Answer

Risk involves situations where the probabilities of different outcomes are known, as in the case of the 10 percent chance of passing clinical trials.

Managers in the Field of Biotechnology Know That New Drugs