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Decision making situations can be categorized along a scale which ranges from:
Uncertainty to certainty to risk
Certainty to uncertainty to risk
Certainty to risk to uncertainty
Certainty to risk to uncertainty to ambiguity
The four positions on the scale are certainty, risk, uncertainty, and ambiguity. ! Decision making under certainty occurs when a manager knows the precise outcome associated with each possible alternative or course of action. In such situations, there is perfect knowledge about alternatives and their consequences.
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