The conditions under which decisions are made can be classified as
A) certainty,risk,and uncertainty.
B) concentration of effect and magnitude of consequences.
C) certainty,risk,and concentration of effect.
D) risk and magnitude of consequences.

Question

Quizplus · Accepted Answer

The conditions under which decisions are made can be broadly grouped into three categories: certainty (where the outcome of each alternative is known with complete certainty), risk (where the outcomes of all alternatives are known, but the probabilities of their occurrence are uncertain), and uncertainty (where neither the outcomes nor the probabilities of alternative outcomes are known). Therefore, choice A is the best answer. Choice B is incorrect because it does not capture the full range of decision conditions. Choice C is incorrect because it combines risk with concentration of effect, which are different factors. Choice D is also incorrect because it only considers risk and ignores other factors.

The Conditions Under Which Decisions Are Made Can Be Classified