han one state of nature and the decision maker has sufficient information to assign probabilities to the occurrence of each of these states. The probabilities can be obtained from past records or the subjective judgment of the decision maker. In other word, decision situations in which the chance of occurrence of each state of nature is known or can be estimated are defined as decisions made under risk. Such decision-making problems are also known as probabilistic or stochastic decision problems. The correct answer is D.