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Models of Decision Making

Re-review the information in the assigned text for Unit 2 (Chapter 7, 8 & 9) and do a bit of outside research (outside the text using the AIU Library or the Internet) on the differences between rational and irrational decision making. These terms aren't static and are relatively fluid (in other words our interpretation of what is rational or irrational can change with circumstances or time).

For this project consider the fact that at one point in US history the decision to own slaves was considered rational and informed. Today we would consider the decision to own slaves "irrational". For this project:

1. Identify one other example of a decision (past or present) that was once considered "rational" but that is now reviewed as "irrational".
2. Explain, in detail, why the decision was once considered "rational" but would now be considered "irrational".
3. Identify the decision theory (from our learning in Unit 2) you believe was used in the original decision making within your example. Be sure to fully support "why" the theory you selected was present. Simply naming a theory won't be enough...you need to support your answer.

HINT HINT HINT...Part 3 asks you to identify a THEORY from our learning in Unit 2 that applies to your example. Be sure you pick a THEORY and remember you must do more than name a theory...you must also explain HOW & WHY the theory you selected specifically applies to the example you chose. Don't "define" the theory or explain the example again. YOU as the analyst must TIE the theory selected and event together)
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Do not try to answer the questions in this project or prepare your paper until AFTER you have completed the Unit 2 Activity.

Please view the attachment.

To access and complete the Unit 2 Activity click on the Course Materials link on the navigation bar that runs down the left side of the virtual classroom. Select and click on the next link titled Unit 2 Multimedia Course Material link and finally click on the "activity" icon.

Note...there are multiple scenarios within the Unit 2 activity. Your goal is to try to identify the most applicable decision concept (from our learning in Unit 2) for each scenario, support your conclusions, and then provide a summary analysis about what you've learned.

There are three (3) parts to this project. Your research paper should address each one fully and thoroughly.
Part 1: Review each situation (there are multiple scenarios within the activity) and identify which decision concept (theory, principle, model, etc.) from our learning in Unit 2 you believe to be present. Make sure you also explain (for each concept identified) "how" and "why" you arrived at your conclusion. In other words; what information helped you select each concept for each situation?

Part 2: Look at the different decision concepts you identified in part 1. What do you think those different concepts imply about how people make decisions?

Part 3: Do the decisions we make always need to be rational? Under what circumstances are we (decision makers) likely to make irrational choices?

Make sure you reinforce your work with suitable references from the text book and other authoritative and credible references, which must enhance the quality of your response. In the process please use correct APA citation style.

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The response addresses the queries posted in 511 words with references.

//Before start working on this, you are required to be aware of decision making. You should take an example of irrational decision making and provide explanation of it. Define which theory suits this situation. I am trying to develop an understanding on this issue by providing some sample matter. See the text below: //

Introduction

Decisions are formed to solve the problems in an effective manner. There are different types of decisions based on the rational and irrational approaches. Decisions once considered rational, after the passage of time and response of the influenced persons sometimes prove to be irrational. In this paper I am going to describe about the decision of a company, which is also considered rational when implemented but soon after its implementation it was considered to be a big failure or an irrational decision.

Illustration

There are many examples existing in the world, which best suit to this situation and also explain the reason behind choosing them in an effective manner. This is a case about Coca Cola, who introduced new coke as a substitute of its product in the market (Coke Lore, 2008).

Explanation

At the time of implementation, this decision of Coca Cola was considered rational, but soon after the implementation, it was considered as an irrational decision. The decision to make new coke was taken to increase the sale of the company products. As the company had a good market image, so it was considered as a rational decision by the management team. After the introduction of new coke, it was considered as an irrational decision by the management team of the company due to the poor response of the public towards this product (Coke Lore, 2008).

Apart from this, there are other reasons, which form the basis of considering the decision of introducing new coke as an irrational decision. This decision was not based on proper analysis of the consumer tastes and preferences. There was also a lack of emotional consideration of the customers in the decision of introducing new coke. Improper market analysis and lack of effective market tests also form the ground of assuming the decision of Coca Cola as an irrational decision (Wheelen, & Hunger, 2004).

Theory

The theory selected for the original decision making is prospect theory. This theory implies that the decisions are formed by the alternatives, which are presented before the decision makers. ...

Solution Summary

The response addresses the queries posted in 511 and 745 Words, APA References

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