A a condition of risk, the outcome is

A decision making is help to bring out a better outcomes but not all the information available is vary with the outcomes. The range of available information can be measure as a continuum whose endpoint conditions. There are three condition that represent different outcomes which is condition of certainty, condition of risk and condition of uncertainty. According to the condition of certainty is the manager knows all of the outcomes of each alternative.

For example, Sony purposely do promote on the new Smart phone launch and get a 1 million profit but if they didn’t do any promote or promotion their sales might not earning so much profit. This condition manager have enough information to action and estimate the probabilities of various outcomes. If in a condition of risk, the outcome is unknown to take action but there is enough information to estimate probabilities of various outcomes. In this situation we have to gather all the valid information to estimate the probabilities of various outcomes and the information will gather by the market research department so that we can get the information to estimate the risk situation of each outcome. Some of the situation is lack of information to estimate the probabilities of the possible outcomes was faced a condition of uncertainty.

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