Decision- Making Conditions (Scenario)
Sabah is the manager for CaterersRUs, a medium- sized catering company. She is responsible for initiating new client contacts, and staffing both existing and new assignments. She is currently struggling with existing information about the profitability of existing and future clients.
-Sabah can make accurate decisions if she is willing to pay $5,000 for research about the profitability of various new clients. If she pays for the research, she believes that she is operating under a condition of___________ .
A) maximax
B) uncertainty
C) risk
D) certainty

Question

Quizplus · Accepted Answer

Paying for research to gain accurate information about the profitability of various new clients means Sabah would be operating under a condition of certainty, as she would have reliable data to inform her decisions.