Refer to the scenario below to answer the following questions.
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) escalation of commitment
E) heuristics

Question

Quizplus · Accepted Answer

Colleen's brother's assumptions are based on bounded rationality, which acknowledges that individuals have limited information and cognitive abilities, and must make decisions based on incomplete information. He recognizes that the mechanic's initial estimate may not account for unexpected repairs that may arise during the repair process.

Refer to the Scenario Below to Answer the Following Questions