__________ assigns values to outcomes based on the decision maker's attitude toward risk, loss, and other factors.
A)Simulation optimization
B)Utility theory
C)Optimization model
D)Data dashboard

Question

Quizplus · Accepted Answer

Utility theory is a framework that considers the decision maker's risk attitude and assigns a subjective value (utility) to possible outcomes. This allows for a more nuanced and personalized decision-making process, as it takes into account individual preferences and attitudes towards risk and potential losses. Simulation optimization, optimization models, and data dashboards are not directly related to assigning values based on risk attitudes.

__________ Assigns Values to Outcomes Based on the Decision Maker's