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      Question

      ________ decision theory is concerned with how people

      actually make decision.
      A Declarative models Correct Answer Incorrect Answer
      B Normative models Correct Answer Incorrect Answer
      C Descriptive models Correct Answer Incorrect Answer
      D Prescriptive models Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Normative models suggest how people should make decisions while descriptive models describe how people actually make decisions . Descriptive models introduce the concept of satisficing.

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