The Loaned Car (Scenario)
Colleen 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.
-Colleen's brother has a different view of the repairs.He assumes that the mechanic is using the best information available,but there may be other unexpected repairs that surface once he begins the work.He warns Colleen not to be too surprised if the final bill exceeds the mechanic's original estimate.Her brother's observations are based on which assumptions?
A)rationality
B)certainty
C)bounded rationality
D)heuristics

Question

Quizplus · Accepted Answer

Colleen's brother's observations about the possible additional repairs indicate that he understands that the mechanic may not have all the information needed to make a perfectly rational decision, and there may be unexpected variables that affect the repair process. This aligns with the concept of bounded rationality, which acknowledges that decision-making is limited by a lack of complete information, cognitive biases, and time constraints.