When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses __________ to develop an optimal strategy.
A)utility theory
B)predictive analytics
C)data mining
D)decision analysis

Question

Quizplus · Accepted Answer

When faced with uncertain future events and multiple alternatives, decision makers use decision analysis to analyze their options and develop an optimal strategy based on the expected outcomes and the associated risks. Utility theory can also be used in conjunction with decision analysis to weight the importance of different factors in the decision-making process. Predictive analytics and data mining are useful in providing data and insights to inform the decision-making process but are not the primary methods for developing an optimal strategy.

When a Decision Maker Is Faced with Several Alternatives and an Uncertain