Question

QUESTION 11

1. Last month, Jeff applied to three colleges (X, Y, and Z). Before applying, he and his family had visited the all three colleges. There is no need to visit the colleges again. Jeff has received admissions from Colleges X and Y. He is trying to decide which college he will attend. The following information is available:

      College X   College Y

   (1) Cost of attendance       $30,000                  $21,000

   (2) Program quality          Excellent                   Average

   (3) Campus visit cost            $900                         $300

   (4) Location                        big city                      big city

   (5) Scholarship                   $10,000                     $10,000

   Select the items that are relevant to Jeff's decision.

   		(1) and (2)
   		(1), (2) and (3)
   		(1) and (3)
   		(1), (3), and (5)
   		(2) and (4)

Answer 1

Answer: Option 1 (1 and 2)

It is given in the question that Jeff has already visited the college and there is no need to visit the colleges again. Thus the campus visit cost is irrelevant for decision making. Both the colleges are located in big city and thus the location factor is irrelevant. Similarly the amount of scholarship from both the colleges is same, thereby making it irrelevant for decision making. Thus only the cost of attendance and program quality matters for Jeff's decision.