A manager has a choice of three bank CDs that pay different amounts of interest over different time periods. The manager is operating under which condition?
A) jeopardy
B) certainty
C) uncertainty
D) risk

Question

Quizplus · Accepted Answer

B) The manager knows the exact amounts of interest that the CDs will pay over each time period, so he is operating under a condition of certainty. Risk would require the manager to need to estimate the interest that the funds would generate. Uncertainty would be a condition in which the manager could not even make good estimates for each fund. Jeopardy is not a recognized decision-making condition.

A Manager Has a Choice of Three Bank CDs That