As a long-time investor in a large, established mutual fund, Joe Johnson questioned the "gut-reaction or "good feeling method of investing being practiced by the new fund manager. Joe objected to the new fund manager's use of __________ in place of sophisticated decision analysis.
A) bounded rationality
B) satisficing
C) rationality
D) intuition
E) escalation of commitment

Question

Quizplus · Accepted Answer

The correct answer is intuition, as it refers to making decisions based on gut feelings or instincts rather than on detailed analysis or empirical evidence, which contrasts with the sophisticated decision analysis Joe Johnson expects.

As a Long-Time Investor in a Large, Established Mutual Fund