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Gordon Jones Is Considering Purchasing a Computer from Best Buy

question 112

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Gordon Jones is considering purchasing a computer from Best Buy. He has created a scale for rating eight different computers on three different characteristics. He plans to make a short list of only those computers that score at least a 7 on his scale on all three characteristics. Which of the following choice heuristics has he chosen?


Definitions:

Payoff

The return or outcome received from an investment or decision, often used in context of financial transactions and game theory.

Risky Undertaking

An action or project that involves a high degree of uncertainty or danger regarding its outcome or success.

Expected Value

A calculation in probability and statistics that shows what to predict as the outcome on average over many trials.

Investment

The allocation of resources, typically money, with the expectation of generating an income or profit.

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