Question 1

A(n)________ alternative is one that is considered feasible for solving an existing problem and for implementation.

Accepted Answer

A) relevant 
B) unrelated 
C) isolated 
D) distinct 
E) external

Question 2

Which of the following is a traditional technique for handling a programmed decision?

Accepted Answer

A) judgment 
B) rules of thumb 
C) habit 
D) intuition 
E) training

Question 3

The first step in the Delphi technique is ________.

Accepted Answer

A) asking group members to offer solutions 
B) identifying a problem 
C) allowing group members to meet face to face 
D) preparing a questionnaire on the problem at hand 
E) identifying experts on the matter being discussed

Question 4

Jack works at an advertising agency and leads a team of 8 graphic designers.Whenever he has to make a decision,he does so by himself and rarely asks his team members for their suggestions or inputs.Which of the following orientations does Jack have?

Accepted Answer

A) ideal 
B) exploitative 
C) receptive 
D) hoarding 
E) marketing-oriented

Question 5

Nonprogrammed decisions are ________.

Accepted Answer

A) made by the workforce 
B) one-shot decisions 
C) routine and repetitive 
D) less time-consuming 
E) made by computers

Question 6

The tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs is known as ________.

Accepted Answer

A) confirmation bias 
B) loss aversion 
C) the bandwagon effect 
D) overconfidence 
E) unrealistic optimism

Question 7

Which of the following is true about decisions taken through consensus?

Accepted Answer

A) It occurs when the team members approve of an individual's decision. 
B) It requires little involvement or assistance from the manager. 
C) Its effectiveness can be hampered by poor interpersonal relations. 
D) It is foolproof and successful at all times. 
E) The decision group generally consists of only managers.

Question 8

________ is a decision-making tool used in risk situations - situations in which decision makers are not completely sure of the outcome of an implemented alternative.

Accepted Answer

A) Probability theory 
B) Bandwagon effect 
C) Loss aversion 
D) Heuristics 
E) Bounded rationality

Question 9

________ occurs when an individual makes a decision that is not optimal,but is good enough.

Accepted Answer

A) Loss aversion 
B) Satisficing 
C) Intuition 
D) Bias 
E) Unrealistic optimism

Question 10

One of the disadvantages of group decision making is that they cost the organization more than individual decisions.

Accepted Answer

A) True 
 B)False

Question 11

________ refers to the likelihood that an event or outcome will actually occur.

Accepted Answer

A) Surety 
B) Ratio 
C) Probability 
D) Brainstorming 
E) Bias

Question 12

In the nominal group technique of decision making,after all the members have discussed the ideas,they ________.

Accepted Answer

A) discuss their ideas one-to-one with the group leader 
B) present their personal views on each of the ideas discussed 
C) write down each idea on the board for all the other members to refer to 
D) take out a secret ballot to support their favorite idea 
E) adopt and implement the most cost effective idea

Question 13

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,which location should Lisa choose?

Accepted Answer

A) Lisa should choose location A. 
B) Lisa should choose location B. 
C) Lisa should choose location C. 
D) Lisa should choose either Location A or B because both are viable. 
E) Lisa should choose either Location A or C because both are viable.

Question 14

Decisions made through consensus usually take less time than those made by a single individual.

Accepted Answer

A) True 
 B)False

Question 15

________,also known as simple rules of thumb,are often used by individuals to make decisions.

Accepted Answer

A) Bounded rationality 
B) Syntax 
C) Folksonomies 
D) Intuition 
E) Heuristics

Question 16

________ refers to an individual's inborn ability to synthesize information quickly and effectively.

Accepted Answer

A) Bounded rationality 
B) Satisficing 
C) Bias 
D) Intuition 
E) Optimism

Question 17

The Delphi group decision-making technique is a process that involves circulating questionnaires on a specific problem among group members,sharing those results,and continuing to recirculate and refine responses until a consensus is reached.

Accepted Answer

A) True 
 B)False

Question 18

________ refers to the departure from rational theory that produces suboptimal decisions.

Accepted Answer

A) Uncertainty 
B) Satisficing 
C) Dogmatism 
D) Bias 
E) Bounded rationality

Question 19

The group decision-making process that involves the circulation of questionnaires on a specific problem among group members is known as ________.

Accepted Answer

A) groupthink 
B) brainstorming 
C) the Delphi technique 
D) the nominal group technique 
E) the devil's advocate technique

Question 20

Which of the following is true about decisions and decision making?

Accepted Answer

A) Managers make decisions only when performing the controlling function. 
B) In the process of deciding,all the alternatives are combined to form a final alternative which invariably is the choice made. 
C) Organizations only have to consider significant decisions that have a major impact on business. 
D) Decision making is the process of choosing the best alternative for reaching objectives. 
E) All managerial decisions are of equal significance to the organization.

Exam 8: Making Decisions

A(n) ________ alternative is one that is considered feasible for solving an existing problem and for implementation.

Which of the following is a traditional technique for handling a programmed decision?

The first step in the Delphi technique is ________.

Jack works at an advertising agency and leads a team of 8 graphic designers.Whenever he has to make a decision,he does so by himself and rarely asks his team members for their suggestions or inputs.Which of the following orientations does Jack have?

Nonprogrammed decisions are ________.

The tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs is known as ________.

Which of the following is true about decisions taken through consensus?

________ is a decision-making tool used in risk situations - situations in which decision makers are not completely sure of the outcome of an implemented alternative.

________ occurs when an individual makes a decision that is not optimal,but is good enough.

One of the disadvantages of group decision making is that they cost the organization more than individual decisions.

________ refers to the likelihood that an event or outcome will actually occur.

In the nominal group technique of decision making,after all the members have discussed the ideas,they ________.

Decisions made through consensus usually take less time than those made by a single individual.

________,also known as simple rules of thumb,are often used by individuals to make decisions.

________ refers to an individual's inborn ability to synthesize information quickly and effectively.

The Delphi group decision-making technique is a process that involves circulating questionnaires on a specific problem among group members,sharing those results,and continuing to recirculate and refine responses until a consensus is reached.

________ refers to the departure from rational theory that produces suboptimal decisions.

The group decision-making process that involves the circulation of questionnaires on a specific problem among group members is known as ________.

Which of the following is true about decisions and decision making?