Question 1

Herbert Simon won the Nobel Prize in economics for his work in describing ________.

Accepted Answer

A) how people spend money 
B) how most people are perfectly rational 
C) how people make decisions 
D) how people avoid decisions

Question 2

Creative solutions to problems are valued because they are new and different from traditional solutions.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a primary characteristic of groupthink?

Accepted Answer

A) conflict among group members 
B) failure to reach consensus within a group 
C) complete conformity among group members 
D) candidness and openness within a group

Question 4

Group decisions generally feature ________ acceptance than decisions made by an individual.

Accepted Answer

A) greater 
B) less 
C) neither greater nor less 
D) more enthusiastic

Question 5

Groups tend to be more efficient and less effective than individual decision making.

Accepted Answer

A) True 
 B)False

Question 6

In a short essay, describe how brainstorming can help avoid groupthink and enhance creativity in group decision making.

Accepted Answer

The answer of In a short essay, describe how brainstorming...

Question 7

Which of the following is the most effective number of people to have in a group?

Accepted Answer

A) 5-7 
B) 2-4 
C) 10-15 
D) 16-25

Question 8

Maximizing value for an organization means making sure that ________.

Accepted Answer

A) the organization makes money 
B) the best interests of the organization are addressed 
C) the decision made is as rational as possible 
D) the decision is as simple as possible

Question 9

Which of the following is NOT a way in which intuition guides people who are making decisions?

Accepted Answer

A) Intuition provides ethics and values guidelines. 
B) Intuition provides a formal analysis method. 
C) Intuition provides experiences to draw from. 
D) Intuition draws on knowledge, skills, and training.

Question 10

In a short essay, discuss the differences among a procedure, a rule, and a policy.Include specific examples of each to support your answer.

Accepted Answer

The answer of In a short essay, discuss the differences...

Question 11

Uncertainty involves a situation in which the probability of a certain outcome is known to be small.

Accepted Answer

A) True 
 B)False

Question 12

A manager chooses to ignore a rigorous decision-making process and selects TV monitor A over monitor B because he "trusts" company A more than company B.If the decision he made was rational, which of the following is true?

Accepted Answer

A) Monitor A is really the better choice. 
B) The manager should have included "trust" as a criterion. 
C) Monitor B is really the better choice. 
D) The manager must have made a mistake in calculating his weighted criteria.

Question 13

In a short essay, discuss the assumptions of rationality and the validity of those assumptions.

Accepted Answer

The answer of In a short essay, discuss the assumptions...

Question 14

Programmed decisions draw heavily on which of the following?

Accepted Answer

A) mistakes made in the past 
B) past solutions that were successful 
C) past solutions that were unsuccessful 
D) innovative, new solutions

Question 15

If a car buyer knows the inventory dealer price of the same car at different dealerships, he or she is operating under what type of decision-making condition?

Accepted Answer

A) risk 
B) uncertainty 
C) certainty 
D) factual

Question 16

Structured problems typically have ________ while unstructured problems typically have ________.

Accepted Answer

A) only one solution; many solutions 
B) many solutions; one solution 
C) many solutions; fewer solutions 
D) two solutions; three solutions

Question 17

Escalation of commitment can occur when people don't ________.

Accepted Answer

A) want to make a decision 
B) want to admit that an earlier decision was flawed 
C) accept current conditions 
D) understand that conditions have changed

Question 18

Programmed decisions work well for solving ________.

Accepted Answer

A) structured problems 
B) unstructured problems 
C) both structured and unstructured problems 
D) poorly defined problems

Question 19

Which of the following is NOT a reason why managers often resort to using heuristics?

Accepted Answer

A) They seem to eliminate complexity. 
B) They seem to eliminate ambiguity. 
C) They save time. 
D) They thoroughly explore all alternatives.

Question 20

Which of the following would be a fairly objective criterion by which a bicycle buyer could assess different bike models?

Accepted Answer

A) handling 
B) weight 
C) quality of craftsmanship 
D) style

Exam 4: Foundations of Decision Making

Herbert Simon won the Nobel Prize in economics for his work in describing ________.

Creative solutions to problems are valued because they are new and different from traditional solutions.

Which of the following is a primary characteristic of groupthink?

Group decisions generally feature ________ acceptance than decisions made by an individual.

Groups tend to be more efficient and less effective than individual decision making.

In a short essay, describe how brainstorming can help avoid groupthink and enhance creativity in group decision making.

Which of the following is the most effective number of people to have in a group?

Maximizing value for an organization means making sure that ________.

Which of the following is NOT a way in which intuition guides people who are making decisions?

In a short essay, discuss the differences among a procedure, a rule, and a policy.Include specific examples of each to support your answer.

Uncertainty involves a situation in which the probability of a certain outcome is known to be small.

A manager chooses to ignore a rigorous decision-making process and selects TV monitor A over monitor B because he "trusts" company A more than company B.If the decision he made was rational, which of the following is true?

In a short essay, discuss the assumptions of rationality and the validity of those assumptions.

Programmed decisions draw heavily on which of the following?

If a car buyer knows the inventory dealer price of the same car at different dealerships, he or she is operating under what type of decision-making condition?

Structured problems typically have while unstructured problems typically have .

Escalation of commitment can occur when people don't ________.

Programmed decisions work well for solving ________.

Which of the following is NOT a reason why managers often resort to using heuristics?

Which of the following would be a fairly objective criterion by which a bicycle buyer could assess different bike models?