ECONOMICS

Detailed explanation-1: -Ambiguity is by far the most difficult decision situation. Ambiguity means that the goals to be achieved or the problem to be solved is unclear alternatives are difficult to define and information about outcomes is unavailable.

Detailed explanation-2: -Decisions are made under the condition of certainty when the manager has perfect knowledge of all the information needed to make a decision. This condition is ideal for problem solving.

Detailed explanation-3: -A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable refers to ambiguity.

Detailed explanation-4: -When making decisions, managers face three different conditions: certainty, risk, and uncertainty. Let’s look at each. The ideal situation for making decisions is one of certainty, which is a situation where a manager can make accurate decisions because the outcome of every alternative is known.

Detailed explanation-5: -Decisiveness is the ability to make clear-cut and timely decisions with the appropriate amount of information.