Question : Which of the following is a technique used for decision-making under uncertainty?
Option 1: Cost-benefit analysis
Option 2: Pareto analysis
Option 3: Decision tree analysis
Option 4: SWOT analysis
Correct Answer: Decision tree analysis
Solution : The correct answer is (c) Decision tree analysis
Decision tree analysis is a technique commonly used for decision-making under uncertainty. It involves creating a visual representation of a decision problem as a tree-like structure, where each branch represents a possible decision or event and the associated probabilities and outcomes.
Decision trees help in analyzing complex decisions by considering the different possible outcomes and their probabilities. This technique enables decision-makers to assess the expected value or expected utility of different options and make informed choices based on the potential risks and rewards associated with each decision path.