In the classical model of decision making,the ________ asserts that managers choose the alternative that they believe maximizes the desired outcome.
A) retrospective decision model
B) bounded rationality model
C) subjectively expected utility model
D) administrative model

Question

Quizplus · Accepted Answer

The subjectively expected utility model assumes that managers make decisions based on their subjective assessment of the probability of various outcomes and the utility they would receive from each outcome. They then choose the alternative that they believe will maximize their expected utility. This is a key assumption in the classical model of decision making. The other options are not consistent with the classical model.

In the Classical Model of Decision Making,the ________ Asserts That