Question 1

A company CEO decided to acquire a rival company. This is an example of a:
A) programmed decision.
B) non-programmed decision.
C) decision rule.
D) structured decision.
E) bad community decision.

Accepted Answer

Acquiring a rival company is a significant and unique decision that requires a non-programmed decision, which is a decision made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization. Programmed decisions are routine and repetitive decisions that can be addressed with a predetermined decision rule. Decision rule is a prescribed guide for making a decision or taking a course of action. Structured decisions are straightforward and repetitive decisions that follow well-defined procedures. "Bad community decision" is not a relevant option.

Question 2

_____ means that managers might know the goals they want to achieve, but the information about alternatives and future events are incomplete.
A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Advocacy

Accepted Answer

Uncertainty refers to a situation where managers have an idea of their goals, but they lack essential information about alternatives and future outcomes. In such situations, decision making can be challenging because managers have to rely on assumptions and predictions.

Question 3

When a hospital decides to add a radiation therapy unit, it is considered a:
A) programmed decision.
B) structured decision.
C) non-programmed decision.
D) poor management decision.
E) certainty decision.

Accepted Answer

Adding a radiation therapy unit is a non-programmed decision because it is unique and complex, and requires managers to gather and analyze new information before choosing a course of action. This decision cannot be made based on pre-established procedures or rules.

Question 4

Which of the following means that even though a manager may have clearly defined targets based on the available information, the future results associated with each alternative are subject to chance
A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Brainstorming

Accepted Answer

Risk refers to situations where the probabilities of different outcomes are known, allowing managers to make informed decisions despite the chance involved.

Question 5

_____ are almost always associated with conflicts between managers over goals and decision alternatives, rapidly changing circumstances, fuzzy information and unclear links among decision elements.
A) Non-programmed
B) Programmed
C) Wicked decision problems
D) Conventional
E) Good

Accepted Answer

Non-programmed decisions involve unique and non-routine situations, but they do not necessarily involve conflicts between managers, rapidly changing circumstances, or unclear links among decision elements. Programmed decisions are routine and follow established procedures, so they are not usually associated with conflicts or uncertain information. Wicked decision problems are complex, ambiguous, and multifaceted, making them particularly challenging to solve. These types of problems often involve conflicts among decision makers and a high degree of uncertainty, which fits the description given in the question. Conventional decisions are routine and follow established procedures, so they do not fit the description given in the question. "Good" is not a valid answer choice.

Question 6

Which approach defines how a decision-maker should make decisions
A) Normative
B) Scientific
C) Descriptive
D) Reflective
E) Humanistic

Accepted Answer

The normative approach provides a framework for decision-making by specifying how decisions ought to be made based on principles or values. It offers guidance on how decisions should be made, rather than how they actually are made (descriptive), the use of scientific methods to make decisions (scientific), personal reflection (reflective) or a focus on individual emotions and experiences (humanistic). Therefore, the normative approach is the best choice for defining how a decision-maker should make decisions.

Question 7

Which of the following means that each and every piece of information is fully available to a decision maker
A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) None of these

Accepted Answer

Certainty means that every piece of information is fully known and available to the decision maker, leaving no room for doubt or alternative outcomes.

Question 8

During the fallout of the global financial crisis of 2008, governments had to make important decisions in a highly ambiguous environment. The decision to buy out failed banks could best be described as what type of decision
A) Bounded
B) Programmed
C) Conventional
D) Wicked decision problem
E) Irrational decision

Accepted Answer

The decision to buy out failed banks during the global financial crisis can be classified as a wicked decision problem because it was complex, multi-faceted, and had significant long-term implications. The situation was highly ambiguous, and there was no clear right or wrong answer. The decision had to be made under conditions of uncertainty and incomplete information, which made it difficult to evaluate the potential consequences of different options. Therefore, it required a creative and strategic approach to generate and weigh alternative solutions that could lead to the best possible outcomes.

Question 9

Under conditions of _____, statistical analyses of marketing data are often useful.
A) certainty
B) ambiguity
C) risk
D) uncertainty
E) conflict

Accepted Answer

Statistical analyses of marketing data are often useful under conditions of risk, where probabilities of different outcomes can be estimated and used to make informed decisions.

Question 10

A product manager wants to increase the market share of a product, but does not know which factor in the marketing mix is most important to achieving this goal. The manager is operating under a condition of _____.
A) risk
B) ambiguity
C) certainty
D) uncertainty
E) brainstorming

Accepted Answer

Uncertainty means that there is a lack of knowledge or information about the future outcomes. In this case, the product manager is not sure which factor in the marketing mix will lead to increased market share, indicating uncertainty.

Question 11

The classical model of decision making is based on _____ assumptions.
A) philosophical
B) irrational
C) economic
D) uncertainty
E) technological

Accepted Answer

The classical model of decision making assumes economic rationality, which means that individuals make decisions based on a rational thought process aimed at maximizing their benefits or minimizing their losses. It also assumes the availability of complete information and the ability to make decisions devoid of emotions or biases.

Question 12

At the start of every shift, a truck driver plans out a route based on the addresses that he will be visiting to drop off packages. This can best be described as what kind of decision?
A) Programmed
B) Non-programmed
C) Wicked
D) Administrative
E) Intuitive

Accepted Answer

The decision to plan a route based on addresses at the start of every shift is a routine decision that a truck driver is expected to make. It is a programmed decision, which is a decision that has been made before, and therefore does not require much analysis.

Question 13

The four positions on the possibility of failure scale include certainty, risk, ambiguity and _____.
A) uncertainty
B) conflict
C) necessity
D) indecision
E) possibility

Accepted Answer

The four positions on the possibility of failure scale are certainty (failure is guaranteed), risk (failure is possible but can be calculated), ambiguity (failure is possible but the likelihood and consequences are unknown), and uncertainty (failure is possible but the likelihood and consequences cannot be estimated). The best choice for the missing position on this scale is uncertainty.

Question 14

The condition under which ambiguity occurs is when:
A) alternatives are difficult to define.
B) objectives are well defined.
C) information about outcomes is readily available.
D) all the alternatives are known.
E) decisions are already made.

Accepted Answer

Ambiguity occurs when alternatives are difficult to define, which means that there is not a clear understanding of what the different options are or their potential outcomes. This can make it difficult for decision makers to assess the potential risks and rewards of different choices, leading to uncertainty and hesitation in making a decision.

Question 15

_____ is by far the most difficult situation for a decision-maker.
A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Brainstorming for hours and hours

Accepted Answer

Uncertainty is the most difficult situation for a decision-maker because there is no clear information about the possible outcomes of a decision.

Question 16

Which of the following has the highest possibility of failure
A) The condition of certainty
B) The condition of total ambiguity
C) The condition of slight uncertainty
D) The condition of low risk
E) All of these

Accepted Answer

The condition of total ambiguity has the highest possibility of failure as it involves a complete lack of information or understanding about the situation, making it difficult to make informed decisions and increase the probability of failure. The other conditions (certainty, slight uncertainty, low risk) all involve varying degrees of information and understanding, which can help reduce the probability of failure.

Question 17

Associated with the condition of _____ is the lowest possibility of failure.
A) ambiguity
B) uncertainty
C) certainty
D) risk
E) all of these

Accepted Answer

Certainty means that the outcome is known and there is no chance of failure. Therefore, it is associated with the lowest possibility of failure. Ambiguity, uncertainty, and risk all imply some level of unknown or potential for failure.

Question 18

Which of the following means that goals are not clear and the problems are not defined, and likewise the alternatives cannot be found and the outcomes are not visible
A) Certainty
B) Low Risk
C) Some uncertainty
D) Ambiguity
E) Brainstorming

Accepted Answer

Ambiguity means that there is lack of clarity in goals, problems, alternatives and outcomes.

Question 19

A manager is expected to make decisions that are in the organization's best economic interests. The decisions would be based on which of the following
A) The administrative model of decision making
B) The garbage can model of decision making
C) The scientific management model of decision making
D) The classical model of decision making
E) The humanistic model of decision making

Accepted Answer

The classical model of decision making is based on choosing the option that is most economically rational and benefits the organization as a whole. Therefore, a manager is expected to make decisions that follow this model to ensure that the organization's economic interests are being prioritized.

Question 20

Which of these assumptions are included in the classical model of decision making
A) Problems are unstructured and ill defined.
B) The decision-maker strives for conditions of certainty.
C) Criteria for evaluating alternatives are unknown.
D) The decision-maker selects the alternatives that will minimize the economic return to the organization.
E) The situation is always uncertain.

Accepted Answer

The classical model assumes that the decision-maker strives for conditions of certainty and seeks to maximize economic return, assuming that problems are well-defined and that alternative solutions have known outcomes. The other assumptions listed are not included in the classical model.

Quiz 9: Managerial Decision Making

A company CEO decided to acquire a rival company. This is an example of a:

_____ means that managers might know the goals they want to achieve, but the information about alternatives and future events are incomplete.

When a hospital decides to add a radiation therapy unit, it is considered a:

Which of the following means that even though a manager may have clearly defined targets based on the available information, the future results associated with each alternative are subject to chance

_____ are almost always associated with conflicts between managers over goals and decision alternatives, rapidly changing circumstances, fuzzy information and unclear links among decision elements.

Which approach defines how a decision-maker should make decisions

Which of the following means that each and every piece of information is fully available to a decision maker

During the fallout of the global financial crisis of 2008, governments had to make important decisions in a highly ambiguous environment. The decision to buy out failed banks could best be described as what type of decision

Under conditions of _____, statistical analyses of marketing data are often useful.

A product manager wants to increase the market share of a product, but does not know which factor in the marketing mix is most important to achieving this goal. The manager is operating under a condition of _____.

The classical model of decision making is based on _____ assumptions.

At the start of every shift, a truck driver plans out a route based on the addresses that he will be visiting to drop off packages. This can best be described as what kind of decision?

The four positions on the possibility of failure scale include certainty, risk, ambiguity and _____.

The condition under which ambiguity occurs is when:

_____ is by far the most difficult situation for a decision-maker.

Which of the following has the highest possibility of failure

Associated with the condition of _____ is the lowest possibility of failure.

Which of the following means that goals are not clear and the problems are not defined, and likewise the alternatives cannot be found and the outcomes are not visible

A manager is expected to make decisions that are in the organization's best economic interests. The decisions would be based on which of the following

Which of these assumptions are included in the classical model of decision making