Respond to this: Decision$-$making trees are key to efficient decision$-$making in a business. They help the owners or the management of a business to come up with sound decisions that can lead to the growth of the business venture. The perfect information concept theorizes that decision$-$makers should have full and accurate information about the issue they are planning to tackle. The concept is useful when making decisions while armed with most facts but can be challenging when tackling unpredictable cases. Generally, the concept is unrealistic as most decision$-$makers rarely have all the required facts when making decisions. For example, when you start a restaurant in a busy town you can be sure of the monthly profit and the cost of business but you cannot be certain that the municipality council will not introduce new regulations that may curtail your business. Therefore, the perfect information concept is useful in planning but in most cases not realistic enough.

Perfect information is very useful in the planning and analysis stages of decision$-$making. Nevertheless, when tackling a scenario where perfect information is not realistic, a business owner can apply the probability theory and the sensitivity analysis method. The probability theory$/$probabilistic decision$-$making looks at the various possible outcomes of any decision. It is important to start a decision$-$making process by analyzing probabilistic quantities since realistically, very few quantities are deterministic $($Templeman$,1982).$ The sensitivity analysis option evaluates how variations in assumptions related to a certain decision might affect the results of that decision. Sensitivity analysis is a key component of a decision$-$making process and can result in the establishment of a decision$-$support framework $($Borgonovo & Peccati, $2008).$ The probability theory is the most useful additional information theory for Ritz$-$Carlton since it facilitates an exhaustive analysis before decision$-$making.