New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The bounded rationality model can be used in the

    following situations except when __________
    A The minimum criteria are clear Correct Answer Incorrect Answer
    B You have less time to invest to make the decision Correct Answer Incorrect Answer
    C You are not trying to maximize your outcome Correct Answer Incorrect Answer
    D Information on alternatives can be gathered and clearly quantified Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The  bounded rationality model of decision making recognizes the limitations of our decision-making processes. According to this model, individuals knowingly limit their options to a manageable set and choose the first acceptable alternative without conducting an exhaustive search for alternatives.  When information on alternatives can be gathered and quantified, a rational decision-making model is used so as to maximize the quality of their outcomes.

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