Risk analysis helps the decision maker recognize the difference between the expected value of a decision alternative and the payoff that may actually occur.

Question

Quizplus · Accepted Answer

Risk analysis assesses potential risks and uncertainties associated with a decision and helps decision-makers to make informed decisions by weighing the expected outcomes against the potential risks. By comparing the expected value of the decision alternative with possible payoffs and losses, risk analysis helps people make better decisions.

Risk Analysis Helps the Decision Maker Recognize the Difference Between