The basic decision environment categories are
A) certainty and risk.
B) risk and uncertainty.
C) certainty and uncertainty.
D) certainty, uncertainty and risk.

Question

Quizplus · Accepted Answer

The basic decision environment categories are certainty, uncertainty, and risk. Certainty exists when the outcome of every possible alternative is known. Uncertainty exists when the decision-maker lacks complete information about the alternatives or the outcome associated with each alternative. Risk exist when the outcomes cannot be predicted with certainty but the decision-maker can estimate the probabilities of different outcomes. Thus all three categories are important for decision making.

The Basic Decision Environment Categories Are