Question 1

A __________ is a discrepancy between an existing and a desired state of affairs.

Accepted Answer

A)  process 
B)  problem 
C)  scenario 
D)  criterion 
E)  decision 
A)  process 
B)  problem 
C)  scenario 
D)  criterion 
E)  decision

Question 2

Relying on "gut feeling" over cognitive problem solving in decision-making is a phenomenon called __________.

Accepted Answer

A)  sunk costs error 
B)  intuition 
C)  overconfidence bias 
D)  hindsight bias 
E)  escalation of commitment 
A)  sunk costs error 
B)  intuition 
C)  overconfidence bias 
D)  hindsight bias 
E)  escalation of commitment

Question 3

__________ occurs when decision makers take credit for their successes and blame failures on outside factors.

Accepted Answer

A)  escalation of commitment 
B)  confirmation bias 
C)  overconfidence bias 
D)  sunk costs error 
E)  self-serving bias 
A)  escalation of commitment 
B)  confirmation bias 
C)  overconfidence bias 
D)  sunk costs error 
E)  self-serving bias

Question 4

A person at a horse racetrack who bets all of his or her money on the odds-based long shot to "win" (rather than "place" or "show") is making what kind of choice?

Accepted Answer

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

Question 5

A __________ decision is repetitive and can be handled by a routine approach.

Accepted Answer

A)  nonprogrammed 
B)  linear 
C)  satisficing 
D)  programmed 
E)  technical 
A)  nonprogrammed 
B)  linear 
C)  satisficing 
D)  programmed 
E)  technical

Question 6

Which step in the decision-making process involves conveying the decision to those affected by it and getting their commitment to it?

Accepted Answer

A)  allocating weights to criteria 
B)  analyzing alternatives 
C)  selecting an alternative 
D)  implementing the alternative 
E)  evaluating the decision effectiveness 
A)  allocating weights to criteria 
B)  analyzing alternatives 
C)  selecting an alternative 
D)  implementing the alternative 
E)  evaluating the decision effectiveness

Question 7

Refer to the scenario below to answer the following questions.
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 has a different view of the repairs. He assumes that the mechanic is using the best information available, but there may be other unexpected repairs that surface once he begins the work. He warns Colleen not to be too surprised if the final bill exceeds the mechanic's original estimate. Her brother's observations are based on which assumptions?

Accepted Answer

A)  rationality 
B)  certainty 
C)  bounded rationality 
D)  escalation of commitment 
E)  heuristics 
A)  rationality 
B)  certainty 
C)  bounded rationality 
D)  escalation of commitment 
E)  heuristics

Question 8

A decision criterion defines what is important or relevant to resolving a problem.

Accepted Answer

A) True 
 B)False

Question 9

Sophie is in charge of recruitment at her company. During a particular interview, the first thing Sophie noticed about the applicant was that he was improperly attired. Though the candidate possessed the necessary qualifications and effectively answered all her questions, Sophie rejected him. This is an example of the ________.

Accepted Answer

A)  randomness bias 
B)  self-serving bias 
C)  selective perception bias 
D)  representation bias 
E)  hindsight bias 
A)  randomness bias 
B)  self-serving bias 
C)  selective perception bias 
D)  representation bias 
E)  hindsight bias

Question 10

Alanna has just been given the assignment of developing the marketing strategy for the company's new product to be released in November. What type of decision-making will be required of Alanna?

Accepted Answer

A)  structured 
B)  unstructured 
C)  technical 
D)  programmed 
E)  nonprogrammed 
A)  structured 
B)  unstructured 
C)  technical 
D)  programmed 
E)  nonprogrammed

Question 11

One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

Accepted Answer

A) True 
 B)False

Question 12

The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.

Accepted Answer

A) True 
 B)False

Question 13

describe what a manager can do to make effective decisions in today's fast-moving world. Give examples for each to illustrate your answers.

Accepted Answer

The following are a few guidelines that

Question 14

Risk is a condition in which a decision maker has neither certainty nor reasonable probability estimates.

Accepted Answer

A) True 
 B)False

Question 15

Refer to the scenario below to answer the following questions.
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 needs a vehicle, but she has to decide if the loaned car is worth repairing. She is facing a(n) __________, a discrepancy between an existing and a desired state of affairs.

Accepted Answer

A)  alternative 
B)  criterion 
C)  problem 
D)  crisis 
E)  decision 
A)  alternative 
B)  criterion 
C)  problem 
D)  crisis 
E)  decision

Question 16

Optimistic managers typically select the alternative designed to __________.

Accepted Answer

A)  maximize the maximum payoff 
B)  maximize the minimum payoff 
C)  minimize the maximum regret 
D)  minimize the minimum payoff 
E)  maximize the minimum regret 
A)  maximize the maximum payoff 
B)  maximize the minimum payoff 
C)  minimize the maximum regret 
D)  minimize the minimum payoff 
E)  maximize the minimum regret

Question 17

In intuitive decision making, managers ________.

Accepted Answer

A)  often tend to ignore their feelings or emotions 
B)  use data from their subconscious mind to help make their decisions 
C)  use available evidence to improve their decision-making skills 
D)  do not depend on their past experiences to make decisions 
E)  ask for opinions and values of other stakeholders 
A)  often tend to ignore their feelings or emotions 
B)  use data from their subconscious mind to help make their decisions 
C)  use available evidence to improve their decision-making skills 
D)  do not depend on their past experiences to make decisions 
E)  ask for opinions and values of other stakeholders

Question 18

The final step in the decision-making process is to implement the chosen alternative.

Accepted Answer

A) True 
 B)False

Question 19

Evidence-based management relies heavily on the decision maker's intuition.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following best describes "maximizing the minimum possible payoff"?

Accepted Answer

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

A __________ is a discrepancy between an existing and a desired state of affairs.

Relying on "gut feeling" over cognitive problem solving in decision-making is a phenomenon called __________.

__________ occurs when decision makers take credit for their successes and blame failures on outside factors.

A person at a horse racetrack who bets all of his or her money on the odds-based long shot to "win" (rather than "place" or "show") is making what kind of choice?

A __________ decision is repetitive and can be handled by a routine approach.

Which step in the decision-making process involves conveying the decision to those affected by it and getting their commitment to it?

A decision criterion defines what is important or relevant to resolving a problem.

Alanna has just been given the assignment of developing the marketing strategy for the company's new product to be released in November. What type of decision-making will be required of Alanna?

One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.

describe what a manager can do to make effective decisions in today's fast-moving world. Give examples for each to illustrate your answers.

Risk is a condition in which a decision maker has neither certainty nor reasonable probability estimates.

Optimistic managers typically select the alternative designed to __________.

In intuitive decision making, managers ________.

The final step in the decision-making process is to implement the chosen alternative.

Evidence-based management relies heavily on the decision maker's intuition.

Which of the following best describes "maximizing the minimum possible payoff"?

Introduction to Management and Organizations

Organizational Culture and the Organizational Environment

Managing in a Global Environment

Managing Entrepreneurially

Managing Responsibly and Ethically

Innovation and Adaptability

Foundations of Planning

Managing Strategically

Organizational Design

Managers and Communication

Managing Human Resources

Leadership

Motivating Employees

Managing Groups and Teams

Evidence-Based Decision Making

Management History

Planning and Control Techniques

Managing Operations

Filters

Exam 7: Decision Making

A __________ is a discrepancy between an existing and a desired state of affairs.

Relying on "gut feeling" over cognitive problem solving in decision-making is a phenomenon called __________.

__________ occurs when decision makers take credit for their successes and blame failures on outside factors.

A person at a horse racetrack who bets all of his or her money on the odds-based long shot to "win" (rather than "place" or "show") is making what kind of choice?

A __________ decision is repetitive and can be handled by a routine approach.

Which step in the decision-making process involves conveying the decision to those affected by it and getting their commitment to it?

A decision criterion defines what is important or relevant to resolving a problem.

Alanna has just been given the assignment of developing the marketing strategy for the company's new product to be released in November. What type of decision-making will be required of Alanna?

One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.

describe what a manager can do to make effective decisions in today's fast-moving world. Give examples for each to illustrate your answers.

Risk is a condition in which a decision maker has neither certainty nor reasonable probability estimates.

Optimistic managers typically select the alternative designed to __________.

In intuitive decision making, managers ________.

The final step in the decision-making process is to implement the chosen alternative.

Evidence-based management relies heavily on the decision maker's intuition.

Which of the following best describes "maximizing the minimum possible payoff"?

Introduction to Management and Organizations

Organizational Culture and the Organizational Environment

Managing in a Global Environment

Managing Entrepreneurially

Managing Responsibly and Ethically

Innovation and Adaptability

Foundations of Planning

Managing Strategically

Organizational Design

Managers and Communication

Managing Human Resources

Leadership

Motivating Employees

Managing Groups and Teams

Evidence-Based Decision Making

Management History

Planning and Control Techniques

Managing Operations

Filters