When conducting engineering economic analyses, it will be assumed at first, for simplicity, that benefits, costs, and physical quantities will be known with a high degree of confidence. This degree of confidence is sometimes called assumed certainty. In virtually all situations, however, there is some doubt as to the ultimate values of various quantities. Both risk and uncertainty in decision-making activities are caused by a lack of precise knowledge regarding future conditions, technological developments, synergies among funded projects, etc. Explain the difference between decisions taken under risk and the decision taken under uncertainty.
When conducting engineering economic analyses, it will be assumed at first, for simplicity, that benefits, costs, and physical quantities will be known with a high degree of confidence. This degree of confidence is sometimes called assumed certainty. In virtually all situations, however, there is some doubt as to the ultimate values of various quantities. Both risk and uncertainty in decision-making activities are caused by a lack of precise knowledge regarding future conditions, technological developments, synergies among funded projects, etc. Explain the difference between decisions taken under risk and the decision taken under uncertainty.
Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
Section: Chapter Questions
Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
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When conducting engineering economic analyses, it will be assumed at first, for
simplicity, that benefits, costs, and physical quantities will be known with a high
degree of confidence. This degree of confidence is sometimes called assumed
certainty. In virtually all situations, however, there is some doubt as to the
ultimate values of various quantities. Both risk and uncertainty in decision-making
activities are caused by a lack of precise knowledge regarding future conditions,
technological developments, synergies among funded projects, etc. Explain the
difference between decisions taken under risk and the decision taken under uncertainty.
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