When conducting engineering economic analyses, it will be assumed at first, for
simplicity, that benefits, costs, and physical quantities will be known with a high
degree of confidence. This degree of confidence is sometimes called assumed
certainty. In virtually all situations, however, there is some doubt as to the
ultimate values of various quantities. Both risk and uncertainty in decision-making
activities are caused by a lack of precise knowledge regarding future conditions,
technological developments, synergies among funded projects, etc. Explain the
difference between decisions taken under risk and the decision taken under uncertainty.