All problems related to decision making under uncertainty have three common elements:
A) the mean,median,and mode
B) the set of decisions,the cost of each decision and the profit that can be made from each decision
C) the set of possible outcomes,the set of decision variables and the constraints
D) the set of decisions,the set of possible outcomes,and a value model that prescribes results
E) None of these options

Question

Quizplus · Accepted Answer

Decision making under uncertainty involves considering the set of possible decisions, the set of possible outcomes, and a value model that assigns values or probabilities to each outcome based on their potential benefits or costs. The options A, B, and C do not fully capture all three elements required for decision making under uncertainty.

All Problems Related to Decision Making Under Uncertainty Have Three