CH 7

Question 1

EU=P x V

Answer 1

EU= Expected Utility
P= Probability of outcome
V= Value of outcome

Question 2

Rational decision making stages

Answer 2

1. Identify
   2.Think
   3.Evaluate
   4.Implement

Question 3

Managers find it difficult to make optimal decisions

Answer 3

Non-rational decision making

Question 4

Managers should make logical and optimal decisions

Answer 4

Rational decision making