1. Briefly state the difference between a prescriptive and a descriptive model. Why is the descriptive approach preferred to the prescriptive one? 2. Why do most people forgo the best solution in favor of one that is acceptable or reasonable when making decisions? 3. The concepts of bounded rationality and satisficing show us that human judgment deviates from rationality. According to researcher Richard Thaler, decision making is bounded in two ways not precisely captured by the concept of bounded rationality. State these two ways. 4. Define the term heuristics and explain why relying on heuristics can be problematic? 5. State whether each of the following situations illustrates (i) the availability heuristic (ii) the representativeness heuristic (iii) the confirmation heuristic or (iv) the affect heuristic a. An employee working in close proximity to the manager's office receives a more critical performance evaluation at year-end than the other employees who sit down the hall b. Jack knows someone who used marijuana and committed violent crimes. When asked the question: "Is marijuana use related to delinquency?", Jack's response was a straight YES. c. During a job interview, the interviewer told the applicant: "when I look at you, all I can see is my former spouse". d. Two years ago, an athletic shoes manufacturing company launched a product that was very successful. This year, the company plans to launch a new but similar product. The product manager concludes that there is an 80% probability that the new product will be successful. e. Charles met with a venture capitalist at a fundraising event. In pitching his business idea, Charles was told by the venture capitalist that he looks like Amazon.com founder Jeff Bezos. Because of that, Charles was able to receive funding from the venture capitalist