Decision making under certainty

It is assumed that complete knowledge is available so that the decision maker knows the outcome of each course of action will be (deterministic environment).

The decision maker is viewed as being a perfect predictor of the future because it is assumed that there is only one outcome for each alternative.

Occurs most often with structured problems.

Knowledge Clasification Page 143

Decision situations are often clasified on the basis of what the decision maker knows or believes about the forecasted results.

• Certainty
• Risk
• Uncertainty

When models are used, any of these conditions can occur and different kinds of models are appropriate for each case.