The Car (Scenario)
Haifa is a student, and her older brother has loaned her an old car. The car is in need of several repairs before she will feel comfortable driving it.
-Haifa's brother has a different view of the repairs. He assumes that the repair person is using the best information available, but there may be other unexpected repairs that might surface and that a higher budget might be more reasonable. He is using ________.
A) risk avoidance
B) Stage 4 decision making
C) bounded rationality
D) rational decision making
Correct Answer:
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