Exam 15: Decision Making

Define the theory of rational choice and list the steps involved in the rational decision making process.1.Define the problem or opportunity 2.Identify the objectives 3.Weigh the objectives according to importance 4.Identify a few possible courses of action 5.Rate each course of action on each of the objectives 6.Compute the optimal decision

The factor that distinguishes conditions of risk from conditions of uncertainty is that in conditions of risk:

A model of decision making that seeks to maximize economic or other outcomes using a rational choice process is known as the _____ model.

Which of the following statements about nonprogrammed decisions is true?

The deliberate,temporary relaxation of rules to explore many possible alternatives is called _____.

Heuristics are the short-cuts that individuals use to save time when making complex decisions.

Describe confirmation bias.

Outline heuristics and its types.

Under conditions of uncertainty:

Using SCRIPTS allows managers to increase the flexibility and speed of their decisions.

Which of the following statements best describes the appropriateness framework?

John,a top executive,is in a situation where he has to quickly decide between two projects that came in simultaneously from two major clients.Since his team is not big enough to complete both projects at a time,he cannot accept both.He had a hunch and just like that accepted one of the clients' project without any considerations.This scenario is an example of _____.

The classical model of decision making seeks to maximize economic outcomes using a rational choice process.

Making a decision on how to integrate a newly acquired firm is an example of a nonprogrammed decision.

_____ is the process of identifying issues and making choices from alternative courses of action.

Rules of thumb or short-cuts that individuals use to save time when making complex decisions are known as _____.

The representativeness heuristic contends that individuals make choices based on a certain starting point.

Identifying a few possible courses of action is the first step involved in the rational decision making process.

Under _____,individuals have information about objectives,priorities,and potential courses of action,but they do not have all the information about the possible outcomes for each course of action.

Which of the following terms refers to alternative presentations of the same information that can significantly alter a decision?