Question 1

Decision making is considered a process rather than an act of choosing among alternatives.

Accepted Answer

A) True 
 B)False

Question 2

A hindsight bias occurs when decision makers increase their commitment to a previous decision despite evidence that it may have been wrong.

Accepted Answer

A) True 
 B)False

Question 3

Intuitive decision making ________.

Accepted Answer

A) is the systematic use of the best available evidence to improve decision-making practice 
B) generally results in poor decisions,and hence managers should learn to ignore their gut feelings 
C) is only appropriate for simple problems 
D) is the process of making decisions based on experience,feelings,and accumulated judgment 
A) is the systematic use of the best available evidence to improve decision-making practice 
B) generally results in poor decisions,and hence managers should learn to ignore their gut feelings 
C) is only appropriate for simple problems 
D) is the process of making decisions based on experience,feelings,and accumulated judgment

Question 4

In a short essay,explain the decision errors and biases that managers make.Give simple examples for each to illustrate your answers.

Accepted Answer

a.When decision makers tend to think the

Question 5

Decision-Making Conditions: Keep on Truckin' (Scenario)
Fiona Lui is general manager of Westcoast Trucks, a medium-sized hauling service located in Vancouver, B.C. She is responsible for scheduling trucks, initiating new routes, and staffing both existing and new routes. She is currently struggling to find more information about the profitability of existing and future truck routes.
-Fiona knows that she is operating in an uncertain environment,but she is an optimist and will most likely follow a ________ strategy.

Accepted Answer

A) multimax 
B) minimin 
C) minimax 
D) maximax 
A) multimax 
B) minimin 
C) minimax 
D) maximax

Question 6

When managers make decisions that are rational but limited by their ability to process the information,they are exhibiting the concept of ________.

Accepted Answer

A) cognitive decision making 
B) bounded rationality 
C) escalation of commitment 
D) intuitive decision making 
A) cognitive decision making 
B) bounded rationality 
C) escalation of commitment 
D) intuitive decision making

Question 7

An individual making a "maximin" choice has what type of psychological orientation toward uncertain decision making?

Accepted Answer

A) optimist 
B) realist 
C) pessimist 
D) opportunist 
A) optimist 
B) realist 
C) pessimist 
D) opportunist

Question 8

Linear thinking style ignores external data and facts and relies directly on the decision maker's internal information processing.

Accepted Answer

A) True 
 B)False

Question 9

Decision making in organizations is something that ________.

Accepted Answer

A) is the responsibility of upper management 
B) is a delegated responsibility from manager to subordinate 
C) is done by all organization members 
D) can only be carried out by managers 
A) is the responsibility of upper management 
B) is a delegated responsibility from manager to subordinate 
C) is done by all organization members 
D) can only be carried out by managers

Question 10

Which of the following is important to remember in evaluating decision effectiveness?

Accepted Answer

A) Ignore criticism concerning the decision-making process. 
B) You may have to start the whole decision-making process over again. 
C) You should restart the decision-making process only if the decision is less than 50 percent effective. 
D) The initial problem may still exist despite the implementation of an effective decision. 
A) Ignore criticism concerning the decision-making process. 
B) You may have to start the whole decision-making process over again. 
C) You should restart the decision-making process only if the decision is less than 50 percent effective. 
D) The initial problem may still exist despite the implementation of an effective decision.

Question 11

"No smoking allowed" is an example of a ________.

Accepted Answer

A) rule 
B) precedent 
C) policy 
D) guideline 
A) rule 
B) precedent 
C) policy 
D) guideline

Question 12

The Loaned Car (Scenario)
Colleen is a student, and her older brother has loaned her an old car. The car is in need of several repairs before she will feel comfortable driving it.
-Before talking with an automotive repair person,Colleen needs to assess which factors are relevant to her decision.The car needs new brakes,tires,a muffler,a tune-up,and could also use some bodywork to repair dents and scratches.After consideration,Colleen decides that safety and reliability are relevant.This is which step in the decision-making process?

Accepted Answer

A) analyze alternatives 
B) identify decision criteria 
C) develop alternatives 
D) select an alternative 
A) analyze alternatives 
B) identify decision criteria 
C) develop alternatives 
D) select an alternative

Question 13

Problems that are straightforward,familiar,and easily defined are called ________ problems.

Accepted Answer

A) opportunity 
B) structured 
C) nonprogrammed 
D) predictable 
A) opportunity 
B) structured 
C) nonprogrammed 
D) predictable

Question 14

The Loaned Car (Scenario)
Colleen is a student, and her older brother has loaned her an old car. The car is in need of several repairs before she will feel comfortable driving it.
-Colleen's brother feels that the car is worth repairing because he has owned several cars made by the same manufacturer,and he has driven this particular car for several years.He also points out that he has invested hundreds of dollars in maintenance and repairs over the years,so it is obviously worth investing in new repairs to keep it running.Colleen's brother appears to be basing his decision on ________ but may also be making an error known as ________.

Accepted Answer

A) intuition; confirmation bias 
B) escalation of commitment; hindsight bias 
C) framing bias; overconfidence bias 
D) intuition; sunk costs error 
A) intuition; confirmation bias 
B) escalation of commitment; hindsight bias 
C) framing bias; overconfidence bias 
D) intuition; sunk costs error

Question 15

Management Decisions: Declining Income (Scenario)
Net income has fallen for the second consecutive quarter, and Amanda is understandably worried. She knows there will be a lot of questions for her at the board of directors meeting Wednesday, and she will be expected to reveal her plan to avoid any third-quarter losses. Amanda begins to analyze the company's financial reports to try to determine the cause of the loss. After much consideration, it appears that expenses have risen dramatically over the last few months. Amanda wonders why. She decides a meeting of the department heads is in order first thing tomorrow morning. At the meeting, Amanda would like to generate several possible solutions to the increased expenses. She wonders how to effectively explore all the options. Next morning, the first option presented at the meeting is to downsize the research and development department, since it is not essential to current operations. Several managers believe the plan will help stem the losses and immediately move to approve it. However, Amanda suggests that they need to look further at the issue and explore other potential solutions. Several suggestions are made, many of which appear to be viable. Amanda wonders what to do next.
-Amanda's group does not have complete information and must try to make a decision rationally within the limits of their ability to process the available information.They will make their decision under which assumptions?

Accepted Answer

A) rationality 
B) bounded rationality 
C) escalation of commitment 
D) programmed 
A) rationality 
B) bounded rationality 
C) escalation of commitment 
D) programmed

Question 16

________ is the vast amount of quantifiable information that can be analyzed and used for decision making.

Accepted Answer

A) Unbound heuristics 
B) Big data 
C) Structured information 
D) Risk statistics 
A) Unbound heuristics 
B) Big data 
C) Structured information 
D) Risk statistics

Question 17

A procedure ________.

Accepted Answer

A) is an explicit statement detailing exactly how to deal with a decision 
B) is a series of interrelated sequential steps to respond to a structured problem 
C) is a set of guidelines that channel a manager's thinking in dealing with a problem 
D) is a series of steps designed to implement decisions for unique and nonrecurring problems 
A) is an explicit statement detailing exactly how to deal with a decision 
B) is a series of interrelated sequential steps to respond to a structured problem 
C) is a set of guidelines that channel a manager's thinking in dealing with a problem 
D) is a series of steps designed to implement decisions for unique and nonrecurring problems

Question 18

Amazon earns billions of dollars every year from its "personalization technologies" based on ________ information.

Accepted Answer

A) heuristics-based 
B) risk management 
C) nonlinear thinking 
D) exploiting big data 
A) heuristics-based 
B) risk management 
C) nonlinear thinking 
D) exploiting big data

Question 19

A perfectly rational decision maker would ________.

Accepted Answer

A) have alternative preferences 
B) not consider profit maximization as an objective 
C) be objective and logical 
D) have to overcome time and cost constraints 
A) have alternative preferences 
B) not consider profit maximization as an objective 
C) be objective and logical 
D) have to overcome time and cost constraints

Question 20

The strap on Brad's backpack broke as he lifted it.On the way to class,he stopped at the first store that carries backpacks and although it was not exactly what he wanted,he purchased a new one from the front counter because it would do the job.Brad has made a(n)________ decision.

Accepted Answer

A) satisficing 
B) irrational 
C) optimizing 
D) perfectly rational 
A) satisficing 
B) irrational 
C) optimizing 
D) perfectly rational

Decision making is considered a process rather than an act of choosing among alternatives.

A hindsight bias occurs when decision makers increase their commitment to a previous decision despite evidence that it may have been wrong.

Intuitive decision making ________.

In a short essay,explain the decision errors and biases that managers make.Give simple examples for each to illustrate your answers.

When managers make decisions that are rational but limited by their ability to process the information,they are exhibiting the concept of ________.

An individual making a "maximin" choice has what type of psychological orientation toward uncertain decision making?

Linear thinking style ignores external data and facts and relies directly on the decision maker's internal information processing.

Decision making in organizations is something that ________.

Which of the following is important to remember in evaluating decision effectiveness?

"No smoking allowed" is an example of a ________.

Problems that are straightforward,familiar,and easily defined are called ________ problems.

________ is the vast amount of quantifiable information that can be analyzed and used for decision making.

A procedure ________.

Amazon earns billions of dollars every year from its "personalization technologies" based on ________ information.

A perfectly rational decision maker would ________.

The strap on Brad's backpack broke as he lifted it.On the way to class,he stopped at the first store that carries backpacks and although it was not exactly what he wanted,he purchased a new one from the front counter because it would do the job.Brad has made a(n)________ decision.

Introduction to Management and Organizations

Organizational Culture and the Organizational Environment

Managing Diversity

Managing in a Global Environment

Managing Entrepreneurially

Managing Responsibly and Ethically

Innovation and Adaptability

Foundations of Planning

Managing Strategically

Designing Organizational Structure

Managers and Communication

Managing Human Resources

Leadership

Motivating Employees

Managing Groups and Teams

Evidence-Based Decision Making

Filters

Exam 8: Decision Making

Decision making is considered a process rather than an act of choosing among alternatives.

A hindsight bias occurs when decision makers increase their commitment to a previous decision despite evidence that it may have been wrong.

Intuitive decision making ________.

In a short essay,explain the decision errors and biases that managers make.Give simple examples for each to illustrate your answers.

When managers make decisions that are rational but limited by their ability to process the information,they are exhibiting the concept of ________.

An individual making a "maximin" choice has what type of psychological orientation toward uncertain decision making?

Linear thinking style ignores external data and facts and relies directly on the decision maker's internal information processing.

Decision making in organizations is something that ________.

Which of the following is important to remember in evaluating decision effectiveness?

"No smoking allowed" is an example of a ________.

Problems that are straightforward,familiar,and easily defined are called ________ problems.

________ is the vast amount of quantifiable information that can be analyzed and used for decision making.

A procedure ________.

Amazon earns billions of dollars every year from its "personalization technologies" based on ________ information.

A perfectly rational decision maker would ________.

The strap on Brad's backpack broke as he lifted it.On the way to class,he stopped at the first store that carries backpacks and although it was not exactly what he wanted,he purchased a new one from the front counter because it would do the job.Brad has made a(n)________ decision.

Introduction to Management and Organizations

Organizational Culture and the Organizational Environment

Managing Diversity

Managing in a Global Environment

Managing Entrepreneurially

Managing Responsibly and Ethically

Innovation and Adaptability

Foundations of Planning

Managing Strategically

Designing Organizational Structure

Managers and Communication

Managing Human Resources

Leadership

Motivating Employees

Managing Groups and Teams

Evidence-Based Decision Making

Filters