Which of the following characterizes decision making under uncertainty?
A)Decision makers must rely on probabilities in assessing outcomes.
B)The likelihood of possible future events is unknown.
C)Relevant parameters have known values.
D)Certain parameters have probabilistic outcomes.
E)Lack of knowledge about how risk-averse the decision maker is.

Question

Quizplus · Accepted Answer

Decision making under uncertainty is characterized by the fact that the likelihood of possible future events is unknown, making it difficult to predict outcomes with certainty.

Which of the Following Characterizes Decision Making Under Uncertainty