Chapter 6 Review 2

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Managers must deal with three basic decision characterisitics:

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Problem decisions:

Opportunity decisions:

Programmed decisions:

Non-programmed decisions:

In the condition of Certainty:

In the condtion of Risk:

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Those that are made frequently and are highly structured.

There is a specific problem that must be resolved.

Those that are made infrequently and are poorly structured.

There is no specific problem but rather an opportunity present itself.

The manager knows what alternatives are available and what conditions are associated with each alternative.

The alternatives may be known, but their costs are simply probablilities rather than certainties.


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