A software firm is considering introducing a new product on the market. However, managers cannot estimate the probability of success for the new product. Which of the following best describes the situation?
A) Risk
B) Uncertainty
C) Bounded rationality
D) Incomplete information

Question

Quizplus · Accepted Answer

When uncertainty exists, the probabilities of alternative outcomes cannot be determined and future outcomes are unknown. Managers are working blind. Because the probability of a given outcome occurring is not known, managers have little information to use in making a decision.

A Software Firm Is Considering Introducing a New Product on the Market