Question 1

Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality.

Accepted Answer

False

Question 2

In the real world, few decisions are certain.

Accepted Answer

This is because real-world decisions are often based on multiple factors and variables, which may change over time, leading to uncertainty and unpredictability in outcomes.

Question 3

.A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable refers to ambiguity.

Accepted Answer

Ambiguity refers to a situation where goals or problems are not clearly defined, alternatives are difficult to determine, and information about outcomes is unclear or unavailable.

Question 4

Making a choice is the most significant part of the decision-making process.

Accepted Answer

While making a choice is important, the decision-making process also involves identifying options, evaluating them, and considering potential outcomes, which are equally significant.

Question 5

The classical model of decision-making works best in organizations that are made up of groups with diverse interests, goals, and values.

Accepted Answer

The classical model of decision-making assumes a rational and logical approach, which works best in organizations with clear, unified goals and values, not in those with diverse interests.

Question 6

The classical decision making model assumes that the decision-maker is rational, and makes the optimal decision each time.

Accepted Answer

The classical decision-making model assumes that the decision-maker is rational and makes the optimal decision each time, based on the available information and evaluation of alternatives. However, in reality, decision-makers may not always be completely rational and may make decisions based on biases or incomplete information. Therefore, the classical decision-making model is an idealization and does not always reflect real-world decision-making.

Question 7

The growth of quantitative decision techniques that use computers has reduced the use of the classical approach.

Accepted Answer

The answer of The growth of quantitative decision techniques that...

Question 8

Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought.

Accepted Answer

Intuition is often described as a "gut feeling" or "sixth sense" that comes from past experiences and subconscious processing of information, without requiring conscious effort or reasoning.

Question 9

The approach that managers use to make decisions usually falls into one of three types - the classical model, the administrative model, and the political model.

Accepted Answer

This statement is true. The three models mentioned are commonly used by managers to make decisions.

Question 10

Programmed decisions are decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions.

Accepted Answer

Programmed decisions are based on established decision rules. These decisions are routine and repetitive, and they are made for situations that have occurred often in the past. Because of their predictability, they can be automated and turned into standard operating procedures, allowing decision makers to rely on established protocols instead of having to make decisions from scratch every time.

Question 11

According to the administrative model of decision making, managers' searches for alternatives are limited because of human, information, and resource constraints.

Accepted Answer

The administrative model of decision making acknowledges that managers face constraints that limit their ability to consider all possible alternatives. These constraints can include limited time, resources, and access to information.

Question 12

Uncertainty means that a decision has clear-cut goals, and that good information is available, but the future outcomes associated with each alternative are subject to chance.

Accepted Answer

Uncertainty means that there is a lack of clear-cut goals and insufficient information, making it difficult to predict future outcomes.

Question 13

Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist.

Accepted Answer

Satisficing behavior is a decision-making strategy that involves choosing the first available option that meets the minimum requirements, even if there may be better options available.

Question 14

A decision is a choice made from available alternatives.

Accepted Answer

This statement is correct. A decision is indeed a choice made from available alternatives.

Question 15

Two employees in Stacey's department quit which is normal for her department. She is faced with the decision to fill these positions. This would be considered a nonprogrammed decision.

Accepted Answer

Filling positions due to employee turnover is a routine and repetitive situation, which would be considered a programmed decision, not a nonprogrammed decision. Nonprogrammed decisions are for new, unstructured, and complex problems.

Question 16

The administrative model of decision making describes how managers actually make decisions in difficult situations.

Accepted Answer

The administrative model of decision making is based on observations of how managers actually make decisions in difficult situations, taking into account limitations on their ability to process information and time constraints, as well as their own cognitive biases and preferences. Therefore, the statement is true.

Question 17

According to the classical model of decision making, managers' searches for alternatives are limited because of human, information, and resource constraints.

Accepted Answer

The answer of According to the classical model of decision...

Question 18

Gerald's Groceries and Marty's Market decided to merge their operations, something neither company has tried before. This would be considered a nonprogrammed decision.

Accepted Answer

Merging their operations is a unique decision that requires a significant amount of analysis, planning, and coordination between the two companies, making it a nonprogrammed decision.

Question 19

According to both research and managerial experience, intuitive decisions are best and always work out.

Accepted Answer

Intuitive decisions may be valuable in certain situations but relying solely on intuition can lead to errors and biases. It is important to balance intuition with analytical thinking and data-based decision-making to achieve optimal results.

Question 20

The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes.

Accepted Answer

With risk, there are known probabilities and potential outcomes, whereas uncertainty pertains to unpredictability and lack of knowledge about potential outcomes.

Quiz 9: Managerial Decision Making