American Institute of Certified Planners (AICP) Practice Exam

What is the term used for the process of setting lower bounds for objectives that must be exceeded for a satisfactory solution?

1. Satisficing

2. Optimization

3. Prioritization

4. Benchmarking

The correct answer is: Satisficing

The term that refers to the process of setting lower bounds for objectives that must be exceeded for a satisfactory solution is satisficing. This concept originates from decision-making theory, where it recognizes that individuals or organizations often seek a solution that meets their minimum acceptable criterion rather than trying to optimize every possible factor. Satisficing allows planners to establish a baseline that foundational decisions must surpass, facilitating practical decision-making when faced with limited resources or competing priorities. In contrast, optimization focuses on finding the best possible solution among all potential options, often without consideration of minimum thresholds. Prioritization involves ranking objectives or projects based on certain criteria but does not specifically imply setting lower bounds. Benchmarking is the process of comparing performance metrics to industry standards or best practices, which does not inherently involve establishing lower limits for objectives. Thus, satisficing captures the essence of the concept in question by emphasizing the focus on minimum acceptable outcomes.