Final answer:
Risk Assessment is the process of making judgments about the probability of an event under uncertainty, utilizing probability theory as a mathematical foundation.
Step-by-step explanation:
The term that describes the process of making judgments about the probability of an event under uncertainty is B) Risk Assessment. Risk assessment involves evaluating the probability and consequences of events that have uncertain outcomes.
This process is widely used in various fields, including politics, education, medicine, and finance. For example, politicians study polls to assess their likelihood of winning an election, and doctors use risk assessment to determine the best treatment options based on the probabilities of different outcomes.
Probability theory is integral to risk assessment, as it provides the mathematical foundation for making quantitative predictions about uncertain events. It began with the study of games of chance and has since become essential in predicting events' outcomes, from weather forecasts to stock market trends.
In decision-making, the application of probability theory helps individuals and businesses weigh the potential risks and benefits of their choices.