Which of These Statements About Human Decision Making Is FALSE

question 2

Multiple Choice

Which of these statements about human decision making is FALSE?

• A)Personal biases typically distort the selection and interpretation of information.
• B)Decision makers engage in a limited search for and evaluation of alternatives.
• C)Decision makers usually examine all alternatives at the same time.
• D)Decision makers compare each alternative to an implicit favorite.
• E)Decision makers have a limited capacity to process information.

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Definitions:

Immediate Cash Outflows

Expenses or payments that must be made in cash immediately or within a very short time frame.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.

Payback Period

The time it takes for an investment or project to generate cash flow or profits sufficient to cover the initial outlay or cost.

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life.