The following table lists nine decisions you are likely to make during your college career:

Decision # Description of Decision

1 Choosing a major.

2 Choosing whether to wake up at 7:30 a.m. when your alarm goes off or hit the snooze button and wake up in another 9 minutes at 7:39 a.m.

3 Choosing whether to buy a desktop or a laptop computer.

4 Choosing whether to bring a car to campus or Use University and local transportation (i.e., the “bus”).

5 Choosing whether to take a required course this semester or next semester.

6 Choosing whether to have pizza or a sub-sandwich for dinner this coming Friday.

7 Choosing whether to stay at your current school or transfer to another school.

8 Choosing whether to lease a two-bedroom apartment or stay in the dormitory next year.

9 Choosing whether to buy a semester pass for the fitness center or pay on a per-use basis.

Required:

a. Classify each decision according to its horizon, short term or long term. Provide a brief rationale for each classification.

b. It is easy to find examples where a short-term decision has long-term consequences. The lecture you attended to be with a friend might spur your interest in a career path and shape the rest of your life. Given this linkage, what is the benefit from classifying decisions according to their time horizon?