Asked by Ny'Kirah Street on Jun 16, 2024
Verified
Mark has two alternatives.There is a 50 percent chance that he will earn $120,000 if he accepts a government contract.If he decides not to accept the contract and instead continues on his present project, he has an 80 percent chance of earning $100,000.If Mark is a perfectly rational decision maker, which of the following statements is TRUE?
A) He will accept the government contract.
B) His expected value of continuing on the present project is $80,000.
C) He will attempt to satisfice.
D) He will ignore economic criteria in making his decision.
E) He will revise his earnings estimate on the government contract to make it more attractive.
Perfectly Rational
The theoretical concept of making decisions based on complete information and logical, objective analysis.
Government Contract
A legal agreement between a private party and a government agency for goods, services, or projects.
Expected Value
Expected value is a calculated average outcome of a random event, considering all possible scenarios and their probabilities of occurrence.
- Master the idea and outcomes of bounded rationality in the activity of decision-making.
Verified Answer
Learning Objectives
- Master the idea and outcomes of bounded rationality in the activity of decision-making.
Related questions
Nobel Prize Winner Herbert Simon Suggested That Managers Use ________ ...
A Decision Strategy That Relies on Limited Information and That ...
Nobel Prize Winner Herbert Simon Suggested That Managers Use Bounded ...
In Evaluating Alternative Solutions, Decision Makers with Bounded Rationality ...
Managers Who Exhibit Bounded Rationality ...