Exam 8: Making Decisions

Lisa is trying to decide on the location of her entrepreneurial venture - Flower Power,a specialty wedding flower service.She has three possible locations (A,B,C)in mind.Lisa has projected that in the first year of operation,under ideal conditions,her company would generate $80,000 at Location A,$55,000 at Location B,and $45,000 at Location C.However,after further analysis,Lisa has determined that there is only a 20 percent chance of ideal conditions occurring during the first year of operation in Location A.Locations B and C have a .4 and a .8 probability,respectively,for ideal conditions during the first year of operations.Based on this information,the expected value for Location A is ________,while for Location B it is ________.

Even though Amy is the leader of a team,she finds it very hard to make decisions on her own.She often asks her colleagues for their opinion on matters that come up and relies on these inputs to make the final decision.Which of the following decision-making orientations does Amy have?

________ refers to the fact that managers are constrained in terms of time,computational power,and knowledge when making decisions.

The phenomenon of compromising the quality of a decision to maintain relationships within a team is referred to as ________.

Generally,organizational decisions are made under conditions of complete certainty of future consequences.

________ refers to situations in which statistical probabilities can be attributed to alternative potential outcomes.

The formula for expected value (EV)is ________.

Overconfidence is the tendency to ________.

Which of the following is an example of a nonprogrammed decision?

Trendy Garb is a retail store that sells women's apparel.The store has comprehensive rules,policies,and procedures for matters related to customer complaints and product returns.Hence,when faced with either of these situations,the store manager simply needs to refer to these guidelines and accordingly proceed.This is an example of ________.

After identifying an existing problem,the next step in the decision-making process is ________.

________ refers to situations where the probability that a particular outcome will occur is not known in advance.

Groupthink is a group decision-making process in which group decisions can be of higher quality than individual decisions thanks to the the group members' efforts to maintain friendly relationships among themselves.

All the English teachers at Springfield High School jointly developed and agreed on the standards that students must achieve in order to graduate to the next grade.This is an example of ________.

All decisions are categorized into programmed and nonprogrammed decisions.

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

Which of the following is true about the definition of bounded rationality?

Peter often asks his colleagues for their ideas and suggestions in order to make a decision.However,he never gives credit to the individuals who give him the ideas and passes the ideas off as his own.Which of the following orientations does Peter have?

A relevant alternative is one that is both feasible for solving an existing problem and also feasible for implementation.

A decision that is routine and repetitive,and typically handled in a specific way,is called a nonprogrammed decision.