If an Alternative Is Eliminated Whenever It Fails to Satisfy

question 201

Multiple Choice

If an alternative is eliminated whenever it fails to satisfy some minimum criterion on an attribute,which decision-making strategy is being used?

• A) a purely additive strategy
• B) a weighted additive strategy
• C) elimination by aspects
• D) the representativeness heuristic

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Definitions:

Degree of Sensitivity

Refers to the responsiveness measure of how a dependent variable such as demand or price reacts to changes in an independent variable.

Net Present Value

The calculation that compares the value of money today to the value of that same money in the future, taking inflation and returns into account.

Degree of Operating Leverage

A financial ratio that measures the impact of fixed costs on the profitability of a company, indicating how earnings before interest and taxes (EBIT) change with sales volume.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, indicating the percentage change in operating income for a one percent change in sales.