What is the difference between ‘decision making under uncertainty’ and ‘decision making under risk? Provide an...

What is the difference between ‘decision making under uncertainty’ and ‘decision making under risk? Provide an example of a decision that involves uncertainty and one that involves risk.

Expert Solution

Answer :

Differences between decision making under uncertainty and decision making under risk and situation when each decision making strategies are used as,

Decision making under uncertainty :-

the administrator has no data or instinctive judgment to use as reason for allotting the probabilities to every one of nature

it gives no or deficient data

chief needs to com up with imaginative methodologies and choice to take care of the issue

chief can not appoint emotional probabilities to the feasible out happens to elective

Situation : -

surge circumstance ( it might cause frenzy and condition of vulnerability which prompts indeterminate making

Decision making under risk :-

the supervisor could characterize nature of issue, conceivable option and the probabilities of every elective prompting the coveted outcome.

it give probabilities with respect to anticipated that outcome would basic leadership

chief couldn't ensure how every option may function.

chief faces future condition obscure all the more regularly truly.

Situation : -

testing of misty spillage in japan after the Tsunami hit in 2011 is an unsafe choice made by government.

orchestra answered 2 years ago

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