Which three conditions do decision makers face? A) certainty, ...

[mydiamond]

Which three conditions do decision makers face?
 
  A) certainty, risk, uncertainty
  B) certainty, uncertainty, confidence
  C) risk, high risk, low risk
  D) certainty, risk, high risk

Question 2

If a car buyer knows the inventory dealer price of the same car at different dealerships, he or she is operating under what type of decision-making condition?
 
  A) risk
  B) uncertainty
  C) certainty
  D) factual

[daiying98]

Answer to Question 1

Answer: A
Explanation: The choice indicating certainty, risk, and uncertainty represents the correct choice, citing the three recognized conditions that decision makers face. Certainty, uncertainty, confidence is eliminated because confidence is not a recognized decision-making condition. Similarly, the other two choices are wrong because risk is the only recognized decision-making categoryhigh risk and low risk are not recognized.

Answer to Question 2

Answer: C
Explanation: The situation described is one of certainty because all outcomes and alternatives are known. Risk would require that the individual needs to make estimates, while uncertainty would mean that the individual would have no confidence in his or her estimation ability for the situation. Factual is not a correct choice because it is not a recognized decision-making condition.