When making a decision under a condition of risk:
A) the decision maker is relatively more likely to make errors.
B) the decision maker clearly knows the consequences of alternatives.
C) the decision maker needs to put in the least amount of time and resources.
D) the decision maker relies exclusively on information and not on experience or intuition.
E) the decision maker clearly knows the payoffs associated with the alternatives.

Question

Quizplus · Accepted Answer

When making decisions under a condition of risk, the decision maker is relatively more likely to make errors. Under a state of risk, the availability of each alternative and its potential payoffs and costs are all associated with probability estimates.

When Making a Decision Under a Condition of Risk