The information to be gathered for a decision depends on which of the following?
A)The current market conditions and on the expected costs and benefits of acquiring the information.
B)The model that underlies a decision and on the expected costs and benefits of acquiring the information.
C)The cost of the information and the current market conditions.
D)The model that underlies a decision and the amount of information that is internally available.

Question

Quizplus · Accepted Answer

The information needed to make a decision depends not only on current market conditions and cost, but also on the underlying model that is being used to make the decision. Therefore, choice B is the most accurate. The cost and availability of the information, as well as the amount of information already available internally, may also be factors to consider, but they are not as fundamental as the model and expected costs and benefits of acquiring the information.

The Information to Be Gathered for a Decision Depends on Which