Decision-Making Conditions (Scenario)
Sabah is the manager for CaterersRUs, a medium-sized catering company. She is responsible for initiating new client contacts, and staffing both existing and new assignments. She is currently struggling with existing information about the profitability of existing and future clients.
-Rasheed, Sabah's best assistant, tells her that he believes he can estimate that there is a 75 percent probability that they can get the business of Salam Brothers, Inc., if they initiate a new service outside the city. Rasheed is operating under a condition of ________.
A) certainty
B) uncertainty
C) maximax
D) risk

Question

Quizplus · Accepted Answer

Rasheed is operating under a condition of risk because he can estimate a probability (75 percent) of getting the business, which means there is some level of known likelihood associated with the outcome.

Decision-Making Conditions (Scenario) Sabah Is the Manager for CaterersRUs, a Medium-Sized Catering Company