6-8 Incomplete Information Factors iNcomplete information exists due to many ssues Risk: managers know a given outcome can fail or succeed and probabilities can be assigned Uncertainty: probabilities cannot be given for outcomes and the future is unknown Many decision outcomes are not known such as a new product introduction Ambiguous information: information whose meaning is not clear o Information can be interpreted in different ways " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 6-8 Incomplete Information Factors ⚫Incomplete information exists due to many issues: ◼ Risk: managers know a given outcome can fail or succeed and probabilities can be assigned. ◼ Uncertainty: probabilities cannot be given for outcomes and the future is unknown. ◆ Many decision outcomes are not known such as a new product introduction. ◼ Ambiguous information: information whose meaning is not clear. ◆ Information can be interpreted in different ways