Which one of the following statements regarding decision making models is CORRECT?
A) The behavioural decision model describes how managers act in situations of limited information and bounded rationality.
B) The classical decision model predicts that managers will make optimising decisions.
C) The classical decision model views managers as acting in a certain world.
D) The behavioural decision model predicts that managers will make satisficing decisions.
E) All of the options listed

Question

Quizplus · Accepted Answer

All the statements correctly describe the respective decision-making models. The behavioural model (A and D) accounts for limited information and bounded rationality, leading to satisficing decisions. The classical model (B and C) assumes a certain world where managers can make optimizing decisions.

Which One of the Following Statements Regarding Decision Making Models