Previous Year Paper
CAT-2002-Previous Years Paper
Von Neumann and Morgenstern assume a decision framework in which all options are thoroughly considered, each option being independent of the others, with a numerical value derived for the utility of each possible outcome (these outcomes reflecting, in turn, all possible combinations of choices). The decision is then made to maximize the expected utility.
(11) ______, such a model reflects major simplifications of the way decisions are made in the real world.
Humans are not able to process information as quickly and effectively as the model assumes; they tend not to think (12) ________ as easily as the model calls for; they often deal with a particular option without really assessing its (13) ______, and when they do assess alternatives, they may be extremely nebulous about their criteria of evaluation.
The most appropriate word is
A implications B disadvantages
C utility D alternatives