respond to your classmates' posts with recommendations and positive comments

Class,

From my experience, I would like to convey that both the risk and uncertainty happens during decision making and this is due to lack of adequate knowledge or fail to know future challenges.

Decision under risky:

Decision leads to be risky when have some knowledge and can predict possibilities about that event. I would like to discuss about whether to make invest in stock market. We will consider that purchasing in XYZs company. We will analyze historical data available about the company, market trends and economic situations. In this decision, the potential outcomes are different cases based on the performance of the stock. Potential outcomes for this decision are based on whether the stock price will be increasing or decreasing or maintains stability.

Most likely situation:

The most likely outcomes of stock price is increasing gradually, leading to profits and reflecting the steady growth when economy is growing with higher inflation and interest rates.

Least likely situation:

The least likely outcomes may be sudden decrease in the stock price, significantly leading to losses because of any unexpected news affecting the market or economic factors.

Decision under uncertainty:

When decisions are to be uncertain, we have no knowledge and are not known about whether the occurrence will happen in future. In Decision under uncertainty, lets take a example of starting a new business like space travel tourism in emerging market with low data and information available. This kind of business is new to the industry and unknown outcomes and several possibilities cannot be predicted. In this decision, the potential outcomes may be really uncertain like business becoming a major player in the industry, struggling to maintain breakeven or facing failure due to unforeseen challenges.

Unknown outcomes:

Market demands:

It is difficult to predict about customers demand for this new service.

Technological factors:

Economic shifts, technological advancements, political changes can impact the outcomes. These are all not in the control of decisions makers and these all may create a additional layer of uncertainty.

Emerging technologies:

The speedy technological advancement will create uncertainty for opportunities and threats. Decision may be challenging due to limited data and limited best practices.

Conclusion:

Finally, decision under risk will take a choice with potential outcomes and known information. So we can assure for better estimates and outcomes. But in decision under uncertainty is facing challenges due to lack of reliable information and rapid changing conditions. So it will require more cautions and adaptable approach due to inherent predictability.