A company is planning to build a new facility in a foreign country,and the success or failure of this venture depends on the demand for the products produced at the facility.It estimates that there is a 70% probability of high demand for the products and a 30% probability of low demand.This is an example of ______.
A)decision under certainty
B)decision under uncertainty
C)decision under state of nature
D)decision under risk

Question

Quizplus · Accepted Answer

This is an example of decision under risk, where there are multiple possible outcomes with different probabilities. The company has estimated the probability of high and low demand and can make a decision based on this information, but there is still uncertainty involved.

A Company Is Planning to Build a New Facility in a Foreign