a. How is your rationality bounded with respect to your decision? In what ways are you doing your best to optimize? In what ways are you really just satisficing? Explain.

b. Which cognitive biases and behavioral challenges could affect your decision-making? How could decision-making noise, affect your decision-making? Explain.

c. Based on the pitfalls in b., suggest a heuristic that should be helpful when making this decision. Explain why it should usually help (which bias is it related to) and when it might lead to mistakes.

d. How can you nudge yourself to a better decision? Why do you expect it to work? What other techniques can you use to limit the effects of bias, noise, and behavioral challenges?

e. How might the cognitive effects of scarcity (e.g. focus dividend, bandwidth tax) or present bias affect the financial aspect of your decision? How will you reduce these effects?