Final answer:
The formal procedure that aids managers in choosing the best alternative when outcomes are uncertain is known as Decision Theory, which employs probability modeling and cost/benefit analysis to weigh risks and rewards.
Step-by-step explanation:
The formal procedure that helps the manager choose the best alternative when outcomes are uncertain is known as Decision Theory. Decision theory is particularly relevant in conditions where decisions must be made in the absence of certainty and involves various tools and techniques, including probability modeling and cost/benefit analysis. Managers might use these methods to assess different scenarios, considering both the risks and rewards associated with each option. This process allows them to select the course of action that is likely to yield the greatest net benefit, based on the available information and their assessment of the likelihood of various outcomes. In this context, decision theory serves as a comprehensive framework for informed strategic decision-making in various areas, such as business, politics, and healthcare.