Asked by Carrisa Green on May 01, 2024
Verified
The ___ is particularly useful in describing how people make decisions under conditions of risk and uncertainty.
A) classical decision model
B) executive decision model
C) behavioural decision model
D) descriptive decision model
E) political decision model
Behavioural Decision Model
suggests that decision-making processes are influenced by cognitive biases, emotions, and social influences rather than being purely rational or logical.
Risk And Uncertainty
The exposure to the possibility of loss or damage and the lack of predictability in events or outcomes, respectively.
- Identify the influence of unpredictability and hazards on the process of making decisions.
- Familiarize oneself with the foundational and behavioral methodologies of decision-making.
Verified Answer
FT
Filiana TanotoMay 03, 2024
Final Answer :
C
Explanation :
The behavioural decision model takes into account the psychological and social factors that influence decision making, particularly under conditions of risk and uncertainty. It recognizes that people do not always make rational, optimal decisions and can be influenced by biases and heuristics. The other options (classical, executive, descriptive, political) do not focus specifically on decision making under conditions of risk and uncertainty.
Learning Objectives
- Identify the influence of unpredictability and hazards on the process of making decisions.
- Familiarize oneself with the foundational and behavioral methodologies of decision-making.
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