Explain what Bounded Rationality is.
Then discuss how this concept can affect the data analysis below: You are the lead consultant for the Diligent Consulting Group. It is mid-October. One of your top clients, Sunshine Floor Barn, has just closed the books for the first three quarters of the year (January through September). Sunshine Floor Barn requests that you analyze the sales performance of its 5 product lines over this 3-quarter period. From past consulting work you have done for the company, you know that Sunshine Floor Barn has 4 regions and 18 total store locations. Each Regional Manager at the company has compiled the data for his/her region. The raw data provided consists of the sales revenue for each of the 5 premium flooring lines for all 4 regions and 18 locations for the first three quarters of the current year.
Also discuss how this concept can affect the decision situation in below: Scenario: You are the Vice President of Franchise Services for the Lucky restaurant chain. You have been assigned the task of evaluating the best location for a new Lucky restaurant. The CFO has provided you with a template that includes 6 criteria (attributes) that you are required to use in your evaluation of 5 recommended locations. Following are the 6 criteria that you will use to evaluate this decision: Traffic counts (avg. thousands/day)—the more traffic, the more customers, and the greater the potential sales. Building lease and taxes (thousands $ per year)—the lower the building lease and taxes, the better. Size of building (square feet in thousands)—a larger building is more preferable. Parking spaces (max number of customers parking)—more customer parking is preferable. Insurance costs (thousands $ per year)—lower insurance costs are preferable.
Explain your logic for both of your arguments broken up between 2 paragraphs. Are there any similarities between these two situations?
