Decisions are made when there are not only multiple states of nature,but they are also unpredictable and the decision maker cannot even make an educated guess about the chances,or probabilities,of their coming.This statement relates to which of the following scenarios?
A)decisions under certainty
B)decisions under uncertainty
C)decisions under state of nature
D)decisions under risk

Question

Quizplus · Accepted Answer

This statement relates to decisions under uncertainty, where the decision maker cannot accurately assess the likelihood of different outcomes. Decisions under certainty involve a known outcome, decisions under state of nature involve probabilities that can be estimated, and decisions under risk involve known probabilities of different outcomes.

Decisions Are Made When There Are Not Only Multiple States