Which of the Following Is True of Noncompensatory Rules

question 88

Multiple Choice

Which of the following is true of noncompensatory rules?

• A) Products with poor performance on one attribute compensate for it by good performance on another attribute.
• B) Any option that does not meet the specifications of consumers is eliminated from consideration.
• C) Noncompensatory rules are used to understand the attributes that guide preferences by having consumers compare products across levels of evaluative criteria.
• D) Consumers usually do not use noncompensatory rules to choose products.

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Definitions:

Future Value

The value of an investment or cash flow at a specified future date, considering the applied interest rate or rates of return.

Cash Flow Stream

A cash flow stream is a series of cash inflows and outflows over a period of time, typically used in financial analysis to determine the value or profitability of an investment.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.