If a decision maker can assign probabilities of occurrences to the states of nature, then the decision-making environment is Decision Making under Uncertainty.

Question

Quizplus · Accepted Answer

When a decision maker can assign probabilities to the states of nature, the environment is referred to as Decision Making under Risk, not Uncertainty. In Decision Making under Uncertainty, probabilities are not known.

If a Decision Maker Can Assign Probabilities of Occurrences to the States