Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.
-Which are characteristics of decision-making under uncertainty?
A) the probability of possible future events is unknown
B) decision-makers must rely on probabilities in evaluating outcomes
C) all process parameters have known values
D) some process parameters have known values

Question

Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45. 
-Which are characteristics of decision-making under uncertainty?
A) the probability of possible future events is unknown 
B) decision-makers must rely on probabilities in evaluating outcomes 
C) all process parameters have known values 
D) some process parameters have known values

Quizplus · Accepted Answer

Decision-making under uncertainty is characterized by the fact that the probability of possible future events is unknown, making it difficult to predict outcomes with certainty.

Exhibit 14.7 The Following Questions Use the Information Below