A retail clothing store manager who estimates how much to order for the current spring season based on last spring's outcomes is operating under what kind of decision-making condition?
A) reliability
B) risk
C) uncertainty
D) certainty
E) rationality

Question

Quizplus · Accepted Answer

The manager is making a decision based on past outcomes, so while there is some level of information available, there is still some level of risk involved, as there is no guarantee that the same outcomes will occur again. This is a situation of risk, where the decision-maker is dealing with known probabilities and can weigh the potential costs and benefits of different options.

A Retail Clothing Store Manager Who Estimates How Much to Order