Question

1 point
When the probability distribution of the results is unknown, such problem are called______________.
Decision under certainty
Decision under risk
Decision under pressure
Decision under uncertainty

Answer 1

Answer:

When the probability distribution of the results is unknown, such problem are called decision under uncertainty.

Answer 2

Answer:

The correct answer is option D

Explanation:

• A condition of certainty exists when the decision-maker knows with reasonable certainty what the alternatives are, what conditions are associated with each alternative and the outcome of each alternative.
• Decision making under risk and Uncertainty example. In the case of decision-making under uncertainty, the probabilities of occurrence of various states of nature are not known. When these probabilities are known or can be estimated, the choice of an optimal action, based on these probabilities, is termed as decision making under risk.