According to a rational model of interference,people should make decisions that maximize value;that is,they should strive to maximize what psychologists and economists call:
A)base-rate decision making.
B)elasticity of demand.
C)optimism bias.
D)expected utility.

Question

Quizplus · Accepted Answer

The rational model of interference states that people make decisions in order to maximize their expected utility, which means that they strive to maximize the overall value of the outcome they expect to receive. Therefore, D is the correct answer, as it refers to the concept of expected utility. Base-rate decision making (A) refers to the use of overall probabilities to make decisions, elasticity of demand (B) refers to the responsiveness of demand to changes in price, and optimism bias (C) refers to the tendency for people to overestimate the likelihood of positive events happening to them. None of these concepts relate directly to the rational model of interference.

According to a Rational Model of Interference,people Should Make Decisions