When a Decision Maker Is Faced with Several Alternatives and an Uncertain

question 25

Multiple Choice

When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses __________ to develop an optimal strategy.

• A)utility theory
• B)predictive analytics
• C)data mining
• D)decision analysis

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Definitions:

Self-Serving Bias

A common tendency for individuals to attribute their successes to internal factors and their failures to external factors.

External Locus

The belief that one's outcomes in life are controlled by external forces or fate rather than one's own efforts.

Erroneously Thinking

The process of making mistakes in reasoning or understanding; incorrect or faulty thinking.

High Self-Esteem

A positive assessment of one's own self-worth and capabilities.