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Sir whats’s the difference between Uncertainty and risk and in which one we will use the probability Risk or Uncertainty?
And I wanna also wanna ask you that do we use certain outcomes in decision tree?
I explain the difference between risk and uncertainty in the introductory paragraph to the ‘Risk and Uncertainty’ chapter in our free lecture notes!!
It also states that it is when we it is risk that we have probabilities.
We show all outcomes in the decision tree, whether certain or not, as you will see in the example that I work through in my free lectures. (Although remember, as I stress in the lectures, that you cannot be asked to draw a decision tree in the exam, but you can be expected to interpret one.)
My lectures (used together with the free lecture notes) are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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