​The Key Distinction Between Risk and Uncertainty Is

question 72

Multiple Choice

​The key distinction between risk and uncertainty is

• A)​Risk cannot be quantified,priced or traded
• B)Uncertainty refers to not knowing possible outcomes or their probabilities
• C)Uncertainty is modeled by listing the possible outcomes and assigning probabilities to the outcomes
• D)​Risk has to do with not knowing the probability distribution of a random variable

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Definitions:

Bureaucracy

A structured organizational system characterized by strict procedures, hierarchical levels, and administrative regulations designed to manage large organizations efficiently.

Dependency

A situation or condition where one entity relies on another for support, resources, or survival.

Experimentation

The process of conducting trials to explore and evaluate new ideas, procedures, or products, often used in research and development.

Closed Systems Theory

An approach in organizational theory that views organizations as systems that are self-contained and do not interact with the outside environment.