Which of the following statements is true regarding the rational decision-making model?
A) The rational decision-making model takes into consideration the limited information-processing capability of individuals.
B) Rational decision-making models involve constructing simplified models that extract the essential features from problems without capturing all their complexity.
C) The rational decision-making model involves satisficing; seek solutions that are satisfactory and sufficient.
D) The rational decision-making model assumes that an individual is able to identify all the relevant options in an unbiased manner.
E) The rational decision-making process is an unconscious one created from distilled experience.
D
Explanation: D) The rational decision-making model relies on a number of assumptions, including that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility. Most decisions in the real world don't follow the rational model. People are usually content to find an acceptable or reasonable solution to a problem rather than an optimal one. This is known as satisficing.
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You are CEO of Acme, Inc. located in the United States. You use the discounted payback period method and accept all projects that pay back in three years
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