D is corrent because it is not always possible to make decisions under conditions of total certainty; decision makers must have a method of determining the best estimate or course of action where uncertainty exists. One method is probability analysis. Probabilities are used to calculate the expected value of each action. The expected value of an action is the weighted-average of the payoffs for that action, where the weights are the probabilities of the various mutually exclusive events that may occur. Cost-volume-profit analysis is used to predict profits at all levels of production in the relevant range. Program evaluation and review technique (PERT) is used to estimate, schedule, and manage a network of interdependent project activities. It is useful for managing large-scale, complex projects. The scattergraph method is a graphical approach to computing the relationship between two variables.
A is incorrect because it assumes certainty.
A is incorrect because it assumes certainty.
A is incorrect because it assumes certainty.
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