An uncertain future event affecting the consequence associated with a decision is known as a
A)chance event.
B)decision alternative.
C)decision node.
D)payoff.

Question

Quizplus · Accepted Answer

A chance event is an uncertain future event that may affect the consequence associated with a decision. A decision maker can only make a decision based on the information that is available to him/her at the time of decision making, and there is always some degree of uncertainty associated with future events. Therefore, the best choice when considering the consequences of a decision is to consider the possibility of chance events occurring and the impact they may have on the outcome.

An Uncertain Future Event Affecting the Consequence Associated with a Decision