Decision-Making Conditions: Keep on Truckin' (Scenario)
Fiona Lui is general manager of Westcoast Trucks, a medium-sized hauling service located in Vancouver, B.C. She is responsible for scheduling trucks, initiating new routes, and staffing both existing and new routes. She is currently struggling to find more information about the profitability of existing and future truck routes.
-Willy,Fiona's best driver,estimates that there is a 75 percent probability that they can get the business of Northern Timbers Forest Products if they initiate a truck route through the remote areas of northern B.C.Willy is operating under a condition of ________.
A)certainty
B)risk
C)uncertainty
D)maximax

Question

Quizplus · Accepted Answer

Willy is operating under a condition of risk because he is able to assign a specific probability (75 percent) to the outcome of getting the business from Northern Timbers Forest Products, indicating that the outcome is not certain but can be estimated with some degree of risk.