The theory which is used to compare judgments or the decisions we make under uncertain conditions is called:

Correct option is B

Explanation:

1. Signal Detection Theory (SDT):
• Explains how individuals make decisions under conditions of uncertainty by distinguishing between signal (target stimulus) and noise (background information).
• It accounts for both sensitivity (ability to detect a signal) and bias (tendency to say “yes” or “no” to a signal).
• Commonly used in perceptual tasks, such as detecting faint sounds or subtle differences in stimuli.

Information Booster (Correct Option):

1. Key Components of Signal Detection Theory:
• Hit: Correctly identifying the presence of a signal.
• Miss: Failing to detect the signal.
• False Alarm: Incorrectly identifying noise as a signal.
• Correct Rejection: Accurately identifying no signal.
2. Applications of SDT:
• Used in psychophysics for studying sensory perception.
• Applies to medical diagnostics, radar operations, and decision-making models.

Additional Information :

1. Subliminal Perception Theory (Option 1):
• Relates to stimuli that are below the threshold of conscious awareness, not to decision-making under uncertainty.
2. Judgmental Process Theory (Option 3):
• Refers to broader theories of judgment formation and evaluation, not specific to signal detection tasks.
3. Decision Processing Theory (Option 4):
• Focuses on the cognitive mechanisms involved in decision-making, but it does not explain the role of signal and noise.