1. Describe the role probability information plays in the decision-making process.
Decision making involves selecting best alternative based on personal values and preferences. Therefore, a decision can only be made from some possible alternatives provided. The decision arrived is taken to be rational if it was the one which had the highest probability of success and it serves the decision makers life goals, desires, values and lifestyle. Likewise, in business organization the managers strive to make decisions which can propel an organization towards achieving its goals. They always consider the probability of an event occurring or even not occurring, and then they settle on one of the possible alternatives (McClave, Benson, ...