When decision-makers lack complete information but have some knowledge of the probabilities associated with the outcomes of various courses of action, they are operating in an environment of:
A) subjectivity.
B) uncertainty.
C) certainty.
D) risk.
E) None of the options listed

Question

Quizplus · Accepted Answer

When decision-makers have some knowledge of the probabilities associated with the outcomes of various courses of action, they are operating in an environment of risk. This means they can make informed decisions based on the likelihood of different outcomes, even if they do not have complete information.

When Decision-Makers Lack Complete Information but Have Some Knowledge of the Probabilities