Busıness Decısıon Models Deneme Sınavı Sorusu #1367058
A food company is considering to establish a logistics company to manage its own logistics operations. On the other hand, the company has no experience and knowledge in the field of logistics. At this point, which of the following is the type of the decision environment that defines this situation?
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Decision making under complexity |
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Decision making under certainty |
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Decision making under uncertainty |
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Decision making under risk |
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Decision making under error |
In a decision problem, the decision maker is aware of various possible events (states of nature) but has insufficient information to assign any probabilities of occurrence to them. This kind of a decision problem is termed as decision making under uncertainty. There are many unknowns and no possibility of knowing what could occur in the future to change the outcome of a decision in decision making under uncertainty.
For firms launching a new product, an important change in marketing strategy or opening first branch can be given examples of decision making under uncertainty.
In the context of the above explanations, the correct answer is C.
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