__________ is the study of the possible payoffs and probabilities associated with a decision alternative or a decision strategy in the face of uncertainty.
A)Risk analysis
B)Cost analysis
C)Certainty analysis
D)Optimization

Question

Quizplus · Accepted Answer

Risk analysis involves assessing the potential outcomes of a decision in the face of uncertain events or factors. By considering the probability and magnitude of different payoffs, one can make an informed decision that balances risk and reward. Cost analysis, by contrast, is concerned with the financial expenses associated with a decision, while certainty analysis assumes that all factors and outcomes are known with certainty. Optimization involves finding the most efficient or effective solution to a problem, which may or may not take into account risk and uncertainty.

__________ Is the Study of the Possible Payoffs and Probabilities