When Managers Are Unable to Even Assign Probabilities to the Outcomes

question 174

Multiple Choice

When managers are unable to even assign probabilities to the outcomes attached to various problem-solving alternatives,__________.

• A)A state of crisis exists.
• B)Uncertainty exists.
• C)Managers cannot rely on creativity.
• D)No solutions are possible.
• E)The planning system must rely on managers' intuition.

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Definitions:

Consumption

The act of using goods and services by households that leads to a decrease in their stock.

Disposable Income

Budget available for households to direct towards saving and spending post-income tax assessment.

Disposable Income

Income available to an individual or household after accounting for taxes and other mandatory charges, available for spending or saving.

Saving

Saving refers to the portion of income not spent on current expenses and set aside for future use, often placed in accounts or investments that can accumulate interest over time.