CAT 2002 — VARC Question 28
Fill the gaps in the passage below with the most appropriate word from the options given for each gap. The right words are the ones used by the author. Be guided by the author's overall style and meaning when you choose the answers.
Von Neumann and Morgenstern assume a decision framework in which all options are thoroughly considered, each option being independent of the others, with a numerical value derived for the utility of each possible outcome (these outcomes reflecting, in turn, all possible combinations of choices). The decision is then made to maximize the expected utility.
_______1______ such a model reflects major simplifications of the way decisions are made in the real world. Humans are not able to process information as quickly and effectively as the model assumes; they tend not to think ______2_______ as easily as the model calls for; they often deal with a particular option without really assessing its ______3_______ and when they do assess alternatives, they may be externally nebulous about their criteria of evaluation.
3
Answer & solution
- A
implications
- B
disadvantages
- C
utility
alternatives
Implication here refers to consequence. People may deal with a particular option without really assessing its disadvantages (option 2) or utility (option 3) or implications (option 1) or alternatives (option 4). Where usage is concerned, all of the options make sense in different ways. But the sentence continues and states, “when they do assess alternatives”. Therefore, the word here is ‘alternatives’.
Hence, the correct answer is option 4.