How is problem solving defined in a decision-making context?

Problem solving in a decision-making context is defined as the process of identifying a difference between the actual state and the desired state, then taking action to address that difference. This definition encapsulates the essence of decision-making, as it involves recognizing gaps or issues that need resolution and figuring out a practical course of action to achieve a desired outcome.

In practical scenarios, effective problem solving allows individuals or organizations to define their objectives clearly, assess their current situation, and implement strategies to bridge the gap. It emphasizes not just the recognition of a problem, but also the proactive steps that need to be taken to rectify the situation, thereby improving overall decision-making and operational efficiency.

The other options do not encompass the full scope of problem-solving in decision-making. Identifying potential markets and analyzing historical data are aspects of research and analysis but do not directly define the act of resolving issues. The idea of eliminating all possible solutions is also contradictory to effective problem-solving, as it overlooks the necessity of evaluating alternatives and selecting the most suitable solution.