Suppose an executive creates a model of her business, including such factors as product demand, trade restrictions, and labor costs.Then she imagines how these factors will play out in the coming year.She uses the predictions as a way of making decisions about whether to hire or fire workers.The executive is relying on the
A)representativeness heuristic
B)availability heuristic
C)simulation heuristic
D)means end heuristic

Question

Quizplus · Accepted Answer

The executive is using a simulation of potential outcomes based on various factors to make decisions about hiring and firing employees. This aligns with the simulation heuristic, which involves using mental simulations to predict and evaluate the outcomes of different actions. The other three heuristics listed are not relevant in this scenario. The representativeness heuristic involves making judgments based on how similar something is to a typical example, which does not apply here. The availability heuristic involves using easily accessible information to make decisions, which is also not relevant in this case. The means-end heuristic involves breaking down a problem into smaller sub-problems in order to achieve a larger goal, and this is not directly applicable to the scenario described.

Suppose an Executive Creates a Model of Her Business, Including