DSM2604(2) RATIONAL DECISION MODEL

Multiple Choice

There are only two types of decision theory models, types and contexts.

• True

• False

Multiple Choice

Normative model is also known as rational decision making.

• True

• False

Multiple Choice

The definition of rational model is …

• making an optimal choice between specific and clearly defined alternatives

• limited conditions which drives the decision to satisfice, rather than optimize

• standards of reasoning are products of differing social frameworks

• recognizing warning signs that an unethical decision is approaching

Multiple Choice

The definition of bounded rationality is …

• reliance on abstract intuitive reasoning

• individual judgment is restricted in its ability to be rational

• standards of reasoning are products of differing social frameworks

• recognizing warning signs that an unethical decision is approaching

Multiple Choice

Which is not a theory under rational model?

• Prospect theory

• Game theory

• Decision analysis

• Expected Utility Theory

Multiple Choice

Jeremy Bentham (1789) is the first scholar developing decision theory.

• True

• False

Multiple Choice

Which theory is developed by Jeremy Bentham?

• Egoism

• Social Group Relativism

• Cultural Relativism

• Utilitarianism

Multiple Choice

Which refers to utilitarianism?

• beneficial to the greatest number of people affected

• conforming to the law

• conforming to social group norms

• furthering personal interest

Multiple Choice

Which scenario refers to utilitarianism?

• Trolley problem

• Prisoner's dilemma

• Asian disease problem

• Physical saliance

Multiple Choice

Payoff matrix is...

• chart determining the optimal strategy for players

• rules dictating how players must behave

• step-by-step guide for predicting future moves of opponents

• financial model to calculate profits in business competition

Multiple Choice

Which is NOT true about game theory?

• Player’s outcome depends on others actions

• There is no equilibrium

• There are number of options from players

• It’s a zero-sum game

Multiple Choice

Who is the scholar that created game theory?

• Jeremy Bentham

• Neumann & Morgenstern

• Howard Raiffa

• Daniel Bernoulli

Multiple Choice

What is game theory?

• analyzing outcome of competitive situations depending on other's actions

• structured approach to making decisions under uncertainty

• rational agents maximizes expected utility

• beneficial to the greatest number of people affected

Multiple Choice

Game theory is also known as decision analysis.

• True

• False

Multiple Choice

Prisoner’s dilemma is an example of Game Theory.

• True

• False

Multiple Choice

What is the Nash Equilibrium?

• Prisoner A and B confess

• Prisoner A and B stay silent

• Prisoner A confess while Prisoner B stay silent

• Prisoner A stay silent while prisoner B confess

Multiple Choice

Who is the scholar that created decision analysis?

• Jeremy Bentham

• Neumann & Morgenstern

• Howard Raiffa

• Daniel Bernoulli

Multiple Choice

What is decision analysis?

• analyzing outcome of competitive situations depending on other's actions

• structured approach to making decisions under uncertainty

• rational agents maximizes expected utility

• beneficial to the greatest number of people affected

Multiple Choice

Decision analysis is also known as statistical decision theory.

• True

• False

Multiple Choice

Who is the scholar that created Expected Utility Theory?

• Jeremy Bentham

• Neumann & Morgenstern

• Howard Raiffa

• Daniel Bernoulli

Multiple Choice

What is expected utility theory?

• analyzing outcome of competitive situations depending on other's actions

• structured approach to making decisions under uncertainty

• rational agents maximizes expected utility

• beneficial to the greatest number of people affected

Multiple Choice

Expected Utility Theory (EUT) is…

• how individuals assess their loss and gain perspectives in a loss aversion manner

• that people maximize utility, meaning the subjective desirability of their actions

• that an individual will perform a cost–benefit analysis to determine whether an option is right for them

• identifying emotions and tracing their influences on decision-making

Match

Match the following rational models

• equilibrium from player with some number of options and zero-sum game

• AKA statistical decision theory

• rational agents ought to maximize expected utility

Game Theory

Decision Analysis

Expected Utility Theory

• Game Theory

• Decision Analysis

• Expected Utility Theory

Match

Match the following scholar to the following theories

• Jeremy Bentham

• Neumann & Morgenstern

• Howard Raiffa

• Daniel Bernoulli

Utilitarianism

Game Theory

Decision Analysis

Expected Utility Theory

• Utilitarianism

• Game Theory

• Decision Analysis

• Expected Utility Theory

Match

Match the following definition to the theories

• analyzing outcome of competitive situations depending on other's actions

• structured approach to making decisions under uncertainty

• rational agents maximizes expected utility

• beneficial to the greatest number of people affected

Game Theory

Decision Analysis

Expected Utility Theory

Utilitarianism

• Game Theory

• Decision Analysis

• Expected Utility Theory

• Utilitarianism