According to prospect theory,when faced with a decision,people first:
A)consider base rates and then make a decision that results in guaranteed utility.
B)calculate expected utility and then ignore alternative sources of inFormation that may conflict with this subjective calculation.
C)simplify available inFormation and then make a decision that offers the best value.
D)choose the best prospect and then seek inFormation out to justify that decision.

Question

Quizplus · Accepted Answer

According to prospect theory, people tend to simplify complex decisions by focusing on the most relevant information and making a decision based on the best value offered. This is known as the "editing phase" of decision making, where individuals reduce the options and information available to them to make a more manageable decision. Therefore, option C, which involves simplifying available information and making a decision that offers the best value, is the best choice.

According to Prospect Theory,when Faced with a Decision,people First