ECONOMICS

Detailed explanation-1: -Satisficing-a combination of the words “satisfy” and “suffice”-means settling for a less-than-perfect solution when working with limited information. Optimizing involves collecting as much data as possible and trying to find the optimal choice.

Detailed explanation-2: -The nonrational models are descriptive rather than prescriptive: They describe how managers actually make decisions rather than how they should.

Detailed explanation-3: -The classical model prescribes the best way to make decisions, based on four assumptions: a clearly defined problem, eliminated uncertainty, access to full information, and rational behavior of the decision-maker.

Detailed explanation-4: -When we say that the classical model of decision-making specifies how managers should make decisions, this is another way of saying that this model is: prescriptive.