Identify an Assumption of the Bounded Rationality Model of Decision

question 95

Multiple Choice

Identify an assumption of the bounded rationality model of decision making.

• A)Managers make decisions by rules of thumb, or heuristics.
• B)Managers are aware of all the possible alternatives.
• C)Managers recognize that their conception of the world is complex.
• D)Managers choose the best alternative after thorough analysis.

---

Definitions:

Adjusted Coefficient

A modified version of a coefficient in statistical models that accounts for the number of predictors or the sample size to avoid overfitting.

Multiple Regression

A statistical method that utilizes a number of predictor variables to determine the outcome of a criterion variable.

Life Expectancy

An average estimate of the number of years a person or organism is expected to live, based on statistical analyses of age-specific mortality rates.

Regression Model

A statistical model that analyzes the relationship between a dependent variable and one or more independent variables.