Which Kind of Decision Rule Is Being Used by a Consumer

question 118

Multiple Choice

Which kind of decision rule is being used by a consumer who says that good performance on one or more attributes cannot "make up for" poor performance on other product attributes:

• A) simple additive rule
• B) compensatory rule
• C) prototypicality rule
• D) average mean rule
• E) noncompensatory rule

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Definitions:

Salvage Value

The anticipated end value of an asset after exhausting its useful life.

Discount Rate

The interest rate used to calculate the present value of future cash flows.

Discount Rate

The rate of interest utilized within discounted cash flow methodology to calculate the current market value of future cash flows.

Net Present Value

The calculation of the current value of a series of future cash flows generated by an investment minus the initial capital cost.