Simplified Decision Rules Such as "Always Buy the Largest Size

question 72

Multiple Choice

Simplified decision rules such as "Always buy the largest size of the cheapest priced detergent" or "Only buy motor oil if the manufacturer is offering a rebate" are called:

• A) formalized group norms
• B) heuristics
• C) formal integration strategies
• D) problem-solving consequences

---

Definitions:

Actuarial Assumptions

The estimates and hypotheses used by actuaries to calculate insurance risks and liabilities, including rates of mortality, morbidity, and interest.

Service Cost

The actuarial present value of benefits earned by employees during a given period, included in the calculation of pension expense.

Actuarial Present Value

A calculation used to determine the present value of a future series of payments or receipts, taking into account variables such as mortality, investment earnings, and expense risks.