Exam Question
“In our model of decision making under different conditions, what is the difference between risk and uncertainty?”
- 1. “Under risk, there is a well defined problem; under uncertainty, the definition is unclear”
- 2. “Under risk, information is reliable; under uncertainty, it is not”
- 3. “Under risk, probabilities can be measured; under uncertainty, they cannot”
- 4. “Under risk, choices are clear and the chances of different outcomes can be measured; under uncertainty, neither applies”
View Answer
Answer 4. “Under risk, choices are clear and the chances of different outcomes can be measured; under uncertainty, neither applies”
Practice set and Exam Quiz
Yes! You can do Online MCQ practice of Managerial Economoics question set and give online exam quiz test for Managerial Economoics, so you can check your knowledge. You can get MCQ Study and Exam link from home page.