Question

A manager chooses to ignore a rigorous decision-making process and selects TV monitor A over monitor B because he "trusts" company A more than company B. If the decision he made was rational, which of the following is true?
a. Monitor A is really the better choice
b. The manager should have included "trust" as a criterion
c. Monitor B is really the better choice
d. The manager must have made a mistake in calculating his weighted criteria

Answer 1

Answer:

a. Monitor A is really the better choice

Explanation:

If we assume that the customer made a rational decision, it means that the decision will result in an optimal level of utility or benefit. In this case, TV monitor A is better because of the trust the customer has for the seller. This trust may have been due to previous experience with the seller.