Decision Making Under Uncertainty – An Analysis

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Introduction

Some experts opine that decision making is the technique of committing resources for an activity that is supposed to be done tomorrow. Most decisions are made in time of uncertainty because no one is sure, what will happen the next moment. If a person is trying to start a new project she will have to make new decisions. Since, the future is uncertain, the decision making process will also be uncertain and she does not know if the expenses she will incur will cover her costs. In order to make better decisions which are based on disciplined thought process she has to manage the extent of uncertainty.

Idea

The decision maker has no idea about the nature of outcome when she is making decisions under uncertainty. Sometimes, if it is expensive to gather information about the tentative outcome, the decision maker is under great uncertainty. In such circumstances, making of decision depends on the personality of the decision maker.

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