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:

Defensive Optimists

Individuals who manage their anxiety about achieving goals by setting lower expectations, yet remain motivated to achieve success.

Reverse Optimists

Individuals who tend to anticipate negative outcomes instead of positive ones, which can affect their decision-making and risk assessment.

Defensive Pessimist

A strategy used by individuals to manage anxiety and motivate themselves by considering and preparing for the worst-case scenario.

Optimist

An individual who generally believes that good things will happen and that situations will turn out well.