Decision Making Under Uncertainty

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08 Fall 08 Fall DECISION MAKING UNDER UNCERTAINTY jUNE 26, 2014 Abstract Decision-making under uncertainty requires decision makers that have the ability and knowledge to choose objectively and decide upon the best alternative. Uncertainty and risk are an inherent part of our business world. Confident and well thought out decision-making can make the difference between a successful and a thwarted organization. Risky situations, complex alternatives and uncertainty warrant a carefully planned out systemic approach, which will list alternatives, strategies, and the probabilities of outcomes. Applying these techniques and understanding that the best decision is one based on what we choose to perceive as the best choice given the information and circumstances. Decision-making is a process that starts with exploration of the possibilities and then concluding on a solution. Virtually all decisions are made in an environment with at least some uncertainty. However, the degree will vary from relative certainty to great uncertainty. There are certain risks involved in making decisions. A decision under uncertainty is when there are many unknowns and no possibility of knowing what could occur in the future to alter the outcome of a decision. We feel uncertainty about a situation when we can't predict with complete confidence what the outcomes of our actions will be. We experience uncertainty about a specific question when we can't give a single answer with complete confidence (McRae, 2012). This essay will give light to choosing alternatives and educating one self to make the best possible decision with the information available when faced with uncertainty. The decision making process helps reduce doubt and uncertainty by giving alternative choices to allow individuals to choose the best and reasonable choice. Steps should be followed to lessen the
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