Assumptions Of Rationality Single,well- defined goal is to be achieved All alternatives Problemis and clearand consequences unambiguous are known Rational Decision Preferences Final choice Making will maximize are clear payoff Preferences are constant No time or cost constraints exist and stable ©Prentice Hall,2002 6-12Assumptions Of Rationality Rational Decision Making Problem is clear and unambiguous Single, well￾defined goal is to be achieved All alternatives and consequences are known Preferences are clear Preferences are constant and stable No time or cost constraints exist Final choice will maximize payoff © Prentice Hall, 2002 6-12