Question

Arturo is a pipeline welder at the midamerican energy company. recently, he had to make a decision about which torch to order for his job. based on past experience, arturo knew that if he selected a discount torch, there was a 95% chance that his manager would authorize the expenditure, but that if he selected a more expensive, brand-name torch, there was only a 50% chance that his manager would authorize the purchase. arturo's decision about which torch to purchase is being made under conditions ofambiguity , because:

Answer 1

Arturo's decision about which torch to purchase is being made under conditions of RISK (ambiguity is wrong) , because: an individual (Arturo) will need to make a decision but he can only know the approximate or possible results from his actions, but the final solution is uncertain. Arturo knows the different possibilities and outcomes, but he is not certain which one will happen.

Answer 2

they are dependent on situational probabilities

Step-by-step explanation:

Arturo's decision about which torch to purchase is being made under conditions of ambiguity , because: they are dependent on other factors.

The decision making is not certainty because his decision on which torch to buy is dependent on probabilities neither is it uncertain because we have information on probabilities of what the outcome might be.

Hence the decision making is ambiguous because it is between certain and uncertain and its outcome is dependent on the probabilities of having a discount or not.