Question 1

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

Accepted Answer

A) anchoring effect 
B) intuition 
C) overconfidence bias 
D) hindsight bias 
E) escalation of commitment 
A) anchoring effect 
B) intuition 
C) overconfidence bias 
D) hindsight bias 
E) escalation of commitment

Question 2

Refer to the Scenario below to answer the questions that follow.
Opposing Views of Social Responsibility (Scenario)
The board of directors of the Four Forks Generating Corporation is meeting to consider the construction of a new electrical generation facility near the Four Forks River.Director Appleton prefers a coal-burning plant because it promises to be the most profitable alternative.Over the short term at least,a coal plant will be by far the least expensive facility to build and operate.Coal is cheap and the considerable pollution from the plant won't affect anything within hundreds of miles from the plant.Director Estrella wants a nuclear plant to be located 30 kilometres upriver from the biggest city in the area.Nuclear power is cleaner than coal.Completely safeguarding the community against accidents in the plant or from disposing of toxic waste could be very expensive.However,Estrella has discovered that the job can be done much more cheaply by cutting some corners-while still strictly following all laws-and creating some additional risk for the community.Director Jossleman supports the most expensive option of the three.She wants a wind farm to be built along the banks of the river on top of a ridge.The wind turbines produce absolutely no pollution and pose no threat to the community or the environment.They are expensive to build and to operate at the current time because they require elaborate backup systems to function when the wind isn't blowing.
-Director Estrella exhibits which of the following social responsibility views?

Accepted Answer

A) obstructionist approach 
B) defensive approach 
C) socio-economic view of social responsibility 
D) accommodative approach 
A) obstructionist approach 
B) defensive approach 
C) socio-economic view of social responsibility 
D) accommodative approach

Question 3

Refer to the Scenario below to answer the questions that follow.
Opposing Views of Social Responsibility (Scenario)
The board of directors of the Four Forks Generating Corporation is meeting to consider the construction of a new electrical generation facility near the Four Forks River.Director Appleton prefers a coal-burning plant because it promises to be the most profitable alternative.Over the short term at least,a coal plant will be by far the least expensive facility to build and operate.Coal is cheap and the considerable pollution from the plant won't affect anything within hundreds of miles from the plant.Director Estrella wants a nuclear plant to be located 30 kilometres upriver from the biggest city in the area.Nuclear power is cleaner than coal.Completely safeguarding the community against accidents in the plant or from disposing of toxic waste could be very expensive.However,Estrella has discovered that the job can be done much more cheaply by cutting some corners-while still strictly following all laws-and creating some additional risk for the community.Director Jossleman supports the most expensive option of the three.She wants a wind farm to be built along the banks of the river on top of a ridge.The wind turbines produce absolutely no pollution and pose no threat to the community or the environment.They are expensive to build and to operate at the current time because they require elaborate backup systems to function when the wind isn't blowing.
-Director Appleton exhibits which of the following social responsibility positions?

Accepted Answer

A) classical view of social responsibility 
B) broad view of social responsibility 
C) socio-economic view of social responsibility 
D) accommodative approach 
A) classical view of social responsibility 
B) broad view of social responsibility 
C) socio-economic view of social responsibility 
D) accommodative approach

Question 4

If all the decision criteria are equally important,weighting the criteria ________.

Accepted Answer

A) improves decision making when large numbers of criteria are involved 
B) is not necessary 
C) produces excellent decisions 
D) improves the criteria 
E) results in more alternatives 
A) improves decision making when large numbers of criteria are involved 
B) is not necessary 
C) produces excellent decisions 
D) improves the criteria 
E) results in more alternatives

Question 5

The classical view of social responsibility is that a for-profit organization's responsibility is ________.

Accepted Answer

A) to help as many people as possible 
B) to maximize both profits and the general welfare 
C) to maximize profits only 
D) to maximize opportunity for all 
A) to help as many people as possible 
B) to maximize both profits and the general welfare 
C) to maximize profits only 
D) to maximize opportunity for all

Question 6

Bob works in a local sporting goods company.He spent the day telling his colleagues that he knew that the company was going to lose the account to their chief rival and kept telling everyone what he would have done to avoid it.He never mentioned his strategies before the loss of the account.Bob seems to suffer from hindsight bias.

Accepted Answer

A) True 
 B)False

Question 7

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) allocate weights to criteria 
B) analyze alternatives 
C) select an alternative 
D) implement the alternative 
E) evaluate decision effectiveness 
A) allocate weights to criteria 
B) analyze alternatives 
C) select an alternative 
D) implement the alternative 
E) evaluate decision effectiveness

Question 8

Michelle works well with others and is concerned about the achievements of her employees.She is open to suggestions and avoids conflicts if at all possible.Which of the following best describes her decision-making style?

Accepted Answer

A) empirical 
B) analytical 
C) conceptual 
D) directive 
E) behavioural 
A) empirical 
B) analytical 
C) conceptual 
D) directive 
E) behavioural

Question 9

When managers try to make decisions rationally but within the limits of their information-processing abilities,they are operating under the assumptions of ________.

Accepted Answer

A) perfect rationality 
B) bounded rationality 
C) certainty 
D) objective rationality 
E) optimization 
A) perfect rationality 
B) bounded rationality 
C) certainty 
D) objective rationality 
E) optimization

Question 10

In allocating weights to the decision criteria,which of the following is helpful to remember?

Accepted Answer

A) The total of the weights should sum to 1.0. 
B) Every criterion considered,regardless of its importance,must receive some weighting. 
C) All weights must be the same. 
D) The most important and least important criteria should be inversely weighted. 
E) Assign a weight to the most important criterion,and then assign weights to the rest against that standard. 
A) The total of the weights should sum to 1.0. 
B) Every criterion considered,regardless of its importance,must receive some weighting. 
C) All weights must be the same. 
D) The most important and least important criteria should be inversely weighted. 
E) Assign a weight to the most important criterion,and then assign weights to the rest against that standard.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Refer to the Scenario below to answer the questions that follow.
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; anchoring effect 
B) escalation of commitment; hindsight bias 
C) satisficing; framing bias 
D) escalation of commitment; overconfidence bias 
E) intuition; sunk costs error 
A) intuition; anchoring effect 
B) escalation of commitment; hindsight bias 
C) satisficing; framing bias 
D) escalation of commitment; overconfidence bias 
E) intuition; sunk costs error

Question 13

Refer to the Scenario below to answer the questions that follow.
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.
-Willy,Fiona's best driver,estimates that there is a 75 percent probability that they can get the business of Northern Timbers Forest Products if they initiate a truck route through the remote areas of northern BC.Willy is operating under a condition of ________.

Accepted Answer

A) certainty 
B) risk 
C) uncertainty 
D) maximax 
E) maximin 
A) certainty 
B) risk 
C) uncertainty 
D) maximax 
E) maximin

Question 14

Which of the following is TRUE concerning groups?

Accepted Answer

A) Groups take more time to make a decision. 
B) Groups tend to have equal participation rates. 
C) There is little pressure to conform. 
D) The responsibility of individual members increases in groups. 
E) Having an even number of group members helps avoid decision deadlocks. 
A) Groups take more time to make a decision. 
B) Groups tend to have equal participation rates. 
C) There is little pressure to conform. 
D) The responsibility of individual members increases in groups. 
E) Having an even number of group members helps avoid decision deadlocks.

Question 15

Refer to the Scenario below to answer the questions that follow.
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 assumption?

Accepted Answer

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

Question 16

Arthur authorizes the expenditure of an additional $100 000 for the production of a new product despite mounting concerns that it will be unprofitable.The cost of the new product has already increased far beyond the initial plans and projections.Arthur's continuing support for this project illustrates the phenomenon of ________.

Accepted Answer

A) anchoring effect 
B) intuition 
C) overconfidence bias 
D) hindsight bias 
E) escalation of commitment 
A) anchoring effect 
B) intuition 
C) overconfidence bias 
D) hindsight bias 
E) escalation of commitment

Question 17

Decision criteria define what is relevant in making a decision.

Accepted Answer

A) True 
 B)False

Question 18

Most managerial decisions in the real world are fully programmed and global in nature.

Accepted Answer

A) True 
 B)False

Question 19

Refer to the Scenario below to answer the questions that follow.
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 
E) maximin 
A) multimax 
B) minimin 
C) minimax 
D) maximax 
E) maximin

Question 20

A procedure is an explicit statement that tells a manager what he or she can or cannot do.

Accepted Answer

A) True 
 B)False

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

If all the decision criteria are equally important,weighting the criteria ________.

The classical view of social responsibility is that a for-profit organization's responsibility is ________.

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

Michelle works well with others and is concerned about the achievements of her employees.She is open to suggestions and avoids conflicts if at all possible.Which of the following best describes her decision-making style?

When managers try to make decisions rationally but within the limits of their information-processing abilities,they are operating under the assumptions of ________.

In allocating weights to the decision criteria,which of the following is helpful to remember?

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

Which of the following is TRUE concerning groups?

Decision criteria define what is relevant in making a decision.

Most managerial decisions in the real world are fully programmed and global in nature.

A procedure is an explicit statement that tells a manager what he or she can or cannot do.

Managers and Management

Environmental Contraints on Managers

Planning and Strategic Management

Organizational Structure and Design

Operations Management

Human Resource Management

Leadership

Motivating Employees

Understanding Groups and Teams

Foundations of Control

Managing Innovation and Change

Filters

Exam 4: Decision Making

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

If all the decision criteria are equally important,weighting the criteria ________.

The classical view of social responsibility is that a for-profit organization's responsibility is ________.

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

Michelle works well with others and is concerned about the achievements of her employees.She is open to suggestions and avoids conflicts if at all possible.Which of the following best describes her decision-making style?

When managers try to make decisions rationally but within the limits of their information-processing abilities,they are operating under the assumptions of ________.

In allocating weights to the decision criteria,which of the following is helpful to remember?

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

Which of the following is TRUE concerning groups?

Decision criteria define what is relevant in making a decision.

Most managerial decisions in the real world are fully programmed and global in nature.

A procedure is an explicit statement that tells a manager what he or she can or cannot do.

Managers and Management

Environmental Contraints on Managers

Planning and Strategic Management

Organizational Structure and Design

Operations Management

Human Resource Management

Leadership

Motivating Employees

Understanding Groups and Teams

Foundations of Control

Managing Innovation and Change

Filters