Class 12 Exam > Class 12 Questions > Which of the following is an assumption of ra...
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Which of the following is an assumption of rationality to rational decision making?
- a)Preferences are clear
- b)Final choice will maximise payoff
- c)The problem is clear and unambiguous
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following is an assumption of rationality to rational dec...
Assumptions of Rational Decision Making
Rational decision-making is a structured process aimed at making choices that maximize benefits. The correct option 'D' signifies that all the listed assumptions are fundamental to rational decision-making. Let’s delve into each assumption:
Preferences are Clear
- Individuals must have well-defined preferences regarding the available alternatives.
- Clear preferences ensure that decision-makers can evaluate options based on their likes and dislikes.
Final Choice Will Maximize Payoff
- The goal of rational decision-making is to select an option that provides the highest possible benefit or utility.
- This assumption emphasizes the importance of choosing an alternative that aligns with the decision-maker's goals.
The Problem is Clear and Unambiguous
- To make rational decisions, the problem must be clearly understood without any ambiguity.
- A well-defined problem allows for effective analysis and comparison of possible solutions.
Conclusion
In summary, all these assumptions — clear preferences, maximizing payoff, and a clear problem statement — are critical for rational decision-making. By adhering to these principles, individuals can ensure that their decision-making process is logical, systematic, and aligned with their objectives. Thus, option 'D' correctly encompasses the essential assumptions of rationality in decision-making.
Rational decision-making is a structured process aimed at making choices that maximize benefits. The correct option 'D' signifies that all the listed assumptions are fundamental to rational decision-making. Let’s delve into each assumption:
Preferences are Clear
- Individuals must have well-defined preferences regarding the available alternatives.
- Clear preferences ensure that decision-makers can evaluate options based on their likes and dislikes.
Final Choice Will Maximize Payoff
- The goal of rational decision-making is to select an option that provides the highest possible benefit or utility.
- This assumption emphasizes the importance of choosing an alternative that aligns with the decision-maker's goals.
The Problem is Clear and Unambiguous
- To make rational decisions, the problem must be clearly understood without any ambiguity.
- A well-defined problem allows for effective analysis and comparison of possible solutions.
Conclusion
In summary, all these assumptions — clear preferences, maximizing payoff, and a clear problem statement — are critical for rational decision-making. By adhering to these principles, individuals can ensure that their decision-making process is logical, systematic, and aligned with their objectives. Thus, option 'D' correctly encompasses the essential assumptions of rationality in decision-making.
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Community Answer
Which of the following is an assumption of rationality to rational dec...
Rational decision making is a multi-step process for making choices between alternatives. The process of rational decision-making favors logic, objectivity, and analysis over subjectivity and insight. The word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.
The rational model also assumes:
1. An individual has full and perfect information on which to base a choice.
2. Measurable criteria exist for which data can be collected and analyzed.
3. An individual has the cognitive ability, time, and resources to evaluate each alternative against the others.
The rational model also assumes:
1. An individual has full and perfect information on which to base a choice.
2. Measurable criteria exist for which data can be collected and analyzed.
3. An individual has the cognitive ability, time, and resources to evaluate each alternative against the others.
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Which of the following is an assumption of rationality to rational decision making?a)Preferences are clearb)Final choice will maximise payoffc)The problem is clear and unambiguousd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for Class 12 2025 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Which of the following is an assumption of rationality to rational decision making?a)Preferences are clearb)Final choice will maximise payoffc)The problem is clear and unambiguousd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 12 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is an assumption of rationality to rational decision making?a)Preferences are clearb)Final choice will maximise payoffc)The problem is clear and unambiguousd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
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