Q. In our model of decision making under different conditions, what is the difference between risk and uncertainty? (Solved)
1. Under risk, there is a well defined problem; under uncertainty, the definition is unclear
2. Under risk, choices are clear and the chances of different outcomes can be measured; under uncertainty, neither applies.
3. Under risk, probabilities can be measured; under uncertainty, they cannot.
4. Under risk, information is reliable; under uncertainty, it is not.
- b. Under risk, choices are clear and the chances of different outcomes can be measured; under uncertainty, neither applies.