Exam 2: Decision Making

Bryan must select a new supplier for lighting fixtures for his company's mobile homes. He has decided quality is more important than price but price is more important than lead times. Bryan will use these priorities to ________.

After Abby listened to the weather report this morning before work, she drove her car and carried an umbrella instead of riding her motorcycle. Whether she realizes it or not, Abby ________.

Risk is the condition in which a decision maker is able to estimate the likelihood of certain outcomes.

Lower-level managers typically confront ________.

An effective decision-making process ________.

Julie is keen on joining Columbia University to pursue a master's degree in economics. However, after three months of applying and waiting for an acceptance letter, she finally decides to attend NYU, which was one of her backup colleges. This is an example of ________.

What are the six characteristics of an effective decision-making process.

The final step in the decision-making process is to ________.

Farrah has called together her management team to review information about customer satisfaction gathered by an external research company. Farrah is engaging in ________.

Mildred was persuaded by a fast-talking salesperson to carry an expensive brand of yarns in her retail needlecraft shop. Seldom does a customer buy this brand, but on those rare occasions Mildred tells herself she made the right decision. The yarns have been sitting on the shelf for several months and she has yet to profit from them. Mildred suffers from the ________.

It is assumed that a rational decision maker ________.

Rules and procedures are the same.

A policy is an explicit statement that tells a manager what can or cannot be done.

Which of the following best describes the psychological orientation of an individual making a "maximax" choice?

The decision-making process begins by identifying decision criteria.

Nonprogrammed decisions ________.

Discuss the three different decision-making conditions that managers usually face.

Belinda wants to introduce a new model to the product line. Three models are being developed. Belinda can choose only one. She has decided to focus on target market size, production costs, and net profits. These are Belinda's ________.

The manager of an apparel store estimates how much to order for the current spring season based on last spring's sales figures. The store manager is operating under which of the following decision-making conditions?

What is meant by bounded rationality and satisficing?