Directions for the next 3 questions: Fill the gaps in the passages 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 Nuemann 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 divisions 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 extremely nebulous about their criteria of evaluation.

Question 101



The first two sentences of the paragraph start of with the description of the Von Nuemann framework on a positive note. The third sentence, however, points out the flaw in such a framework. The correct word that goes into the blank 1 is, therefore, 'Regrettably'.

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