Exam 9: Managerial Decision Making

The ____________ style is used by people who like to consider a broad amount of information,and have a particular concern for socially oriented solutions.

Choosing between a differentiation strategy and an overall cost leadership strategy is an example of a(n)____________.

____________________ decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future.

A __________ approach describes how managers actually make decisions,whereas a __________ approach defines how a decision maker should make decisions.

The __________ model of decision making is most valuable when applied to __________.

The political model of decision making involves intuitive decision making within a coalition of managers.

The ____________________ style is often preferred by people who like to consider complex solutions based on as much data as they can gather.

All of the following are characteristics of classical decision making model,except:

The object of brainstorming is to promote freer,more flexible thinking,and to enable group members to build on one another's creativity.

The classical model of decision making is based on ____________ assumptions.

The step in the decision-making process in which managers analyse the underlying causal factors associated with the situation is called ____________________.

The term ambiguity refers to situations where managers know what they wish to achieve,but information about any alternatives and future events is incomplete.

The __________ model of decision making describes how managers actually make decisions in situations characterised by uncertainty and ambiguity.

Intuition is based on __________,but lacking in __________.

Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff.

____________________ means that decision makers choose the first solution alternative that satisfies minimal decision criteria.

The classical decision making model assumes that the decision maker is rational,and makes the optimal decision each time.

__________ means that a decision has clear-cut goals and that good information is available,but the future outcomes associated with each alternative are subject to chance.

For each of the following decisions,which alternative would you choose? 1)In the final seconds of a game against a traditional rival,the coach of a university football team may choose a play that has a 95 per cent chance of producing a tied score,or one with a 30 per cent chance of victory,but certain defeat if it fails. 2)The president of a major New Zealand company must decide whether to build a new plant within New Zealand that has a 90 per cent chance of producing a modest return on investment,or to build it in a foreign country with an unstable political history.The latter alternative has a 40 per cent chance of failing,but the returns would be enormous if it succeeded. 3)A university student with considerable acting talent must choose a career.She has the opportunity to go on to medical school and become a physician,a career in which she is 80 per cent likely to succeed.She would rather be an actress,but realises that the opportunity is only 20 per cent.

The lowest possibility of failure is associated with the condition of: