Question 1

Which of the following defines a problem in the decision-making process?
A)a discrepancy between what exists and what the decision maker desires to exist
B)a discrepancy between the ideal and the practical
C)something that causes irritation
D)something that calls for attention

Accepted Answer

A problem in the decision-making process is defined as a discrepancy between what exists and what the decision maker desires to exist, which creates a need for a decision to be made. Options B, C, and D do not fully define a problem in the decision-making process.

Question 2

After purchasing new computers for her department, a manager is now comparing the performance of the new computers to the computers they replaced.Which stage of the decision-making process is she carrying out?
A)analysis of alternatives
B)evaluation of decision effectiveness
C)selection of an alternative
D)implementation of an alternative

Accepted Answer

The manager is evaluating the effectiveness of her decision to purchase new computers, which falls under the evaluation stage of the decision-making process. The analysis of alternatives, selection of an alternative, and implementation of an alternative have already been completed at this point.

Question 3

A manager can faithfully execute the decision-making process but still end up with nothing of value if ________.
A)he fails to identify the correct problem
B)he fails to assign number values to different criteria
C)he solves the problem inefficiently
D)he fails to correctly identify the steps of the process

Accepted Answer

Identifying the correct problem is the first and most crucial step in the decision-making process. Without identifying the correct problem, any subsequent steps will be ineffective in producing a valuable outcome.

Question 4

What is a heuristic?
A)a complicated and systematic method of decision making
B)a purely intuitive method of decision making
C)a totally unreliable method of decision making
D)a shortcut or rule of thumb that is used for decision making

Accepted Answer

A heuristic is a shortcut or rule of thumb that is used for decision making. It is a helpful tool for making decisions quickly and efficiently, but it may not always be the best method for making complex decisions or situations with many variables.

Question 5

Decision making begins with ________.
A)selecting alternatives
B)identifying decision criteria
C)identifying a problem
D)eliminating false alternatives

Accepted Answer

Decision making starts with identifying a problem or an opportunity that requires a decision to be made. Once the problem is identified, the next step is to identify decision criteria, generate alternatives, evaluate and choose the best alternative, and implement and monitor the chosen alternative. While selecting alternatives and eliminating false alternatives are also part of the decision-making process, they come after identifying the problem and identifying decision criteria.

Question 6

One legislator sees decreased tax revenue as the key problem in the budget.A second legislator sees increased spending as the problem.Each of these legislators has a(n)________.
A)representation bias
B)self-serving bias
C)availability bias
D)framing bias

Accepted Answer

This scenario illustrates framing bias, where the issue (budget problem) is viewed differently by each legislator based on how the problem is presented or framed (as either a revenue issue or a spending issue).

Question 7

Which of the following would be a fairly objective criterion by which a bicycle buyer could assess different bike models?
A)color
B)weight
C)quality of craftsmanship
D)style

Accepted Answer

Weight is an objective criterion that can be measured and compared between different bike models. Color, quality of craftsmanship, and style are subjective criteria that vary based on personal preferences and opinions.

Question 8

Because they are not systematic or comprehensive, using heuristics in place of an eight-step decision-making process can lead to ________.
A)errors and biases
B)consistently better decisions
C)more imaginative decisions
D)decisions that more directly solve problems

Accepted Answer

Heuristics, while useful, are not always reliable and can lead to errors and biases in the decision-making process. The eight-step decision-making process provides a more systematic and comprehensive approach to making decisions.

Question 9

Which of the following is NOT a reason why managers often resort to using heuristics?
A)They seem to eliminate complexity.
B)They seem to eliminate ambiguity.
C)They save time.
D)They thoroughly explore all alternatives.

Accepted Answer

Managers often resort to using heuristics because they seem to eliminate complexity, eliminate ambiguity, and save time. Thoroughly exploring all alternatives is not a reason why managers often resort to using heuristics as this process would require more time and cognitive effort.

Question 10

The decision-making process consists of a series of eight steps that identify a problem and work toward ultimately ________.
A)determining if there is a solution to the problem
B)solving the problem
C)making a plan to solve the problem
D)breaking down the problem into a series of steps

Accepted Answer

The decision-making process aims to solve the identified problem through a series of steps. While the other options may be involved in the process, ultimately the goal is to reach a solution and solve the problem.

Question 11

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?
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.

Accepted Answer

The manager should have included "trust" as a criterion in his decision-making process. Ignoring a rigorous decision-making process and relying solely on personal trust is not a rational decision-making approach. Without considering trust as a criterion, it is not possible to determine which monitor is the better choice.

Question 12

A manager is determining what kind of new computers she should purchase for her department.She has made a list of five different computer models for consideration.Which stage of the decision-making process is this?
A)selection of an alternative
B)identification of decision criteria
C)development of alternatives
D)analysis of alternatives

Accepted Answer

The manager is in the "development of alternatives" stage, as she is creating a list of different computer models to consider for purchase. This stage involves generating possible options to address the decision at hand.

Question 13

To identify a problem, a manager ________.
A)compares one set of standards or goals to a second set of standards or goals
B)looks for unhappy customers
C)uses intuition to see that things don't look right
D)compares the current state of affairs with some standard or goal

Accepted Answer

To identify a problem, a manager needs to compare the current state of affairs with some standard or goal. This comparison helps the manager to recognize any deviations or gaps and identify a problem that needs to be addressed. Option A refers to comparing two sets of standards or goals, which may not necessarily help in identifying a problem. Option B suggests looking for unhappy customers which is just one way of identifying a problem. Option C refers to using intuition, which may not always be reliable in identifying problems.

Question 14

In allocating weights to the decision criteria, which of the following is most helpful to remember?
A)All weights must be the same.
B)The total of the weights must equal 100.
C)The high score should be a 10, and no two criteria should be assigned the same weight.
D)Assign the most important criterion a score, and then assign weights against that standard.

Accepted Answer

Assigning the most important criterion a score and then assigning weights against that standard ensures that the most important factor receives the appropriate weight, while still allowing for differentiation between the other criteria. It is not necessary for all weights to be the same, nor for the total to equal 100, and assigning a high score of 10 and avoiding equal weights may not accurately reflect the relative importance of each criterion.

Question 15

Which of the following is LEAST likely to be a decision criterion for a high-tech bicycle buyer who cares primarily about performance?
A)warranty
B)gear mechanism
C)frame composition
D)brake assembly

Accepted Answer

A high-tech bicycle buyer who cares primarily about performance is likely more concerned with the gear mechanism, frame composition, and brake assembly than the warranty. They want a bike that delivers the best performance possible, and the warranty is secondary.

Question 16

Which of the following is NOT a common decision-making error or bias?
A)sunk costs
B)randomness
C)forest for the trees
D)overconfidence bias

Accepted Answer

"Forest for the trees" is not a recognized decision-making error or bias. It's a metaphor for someone who is too involved in the details of a problem to look at the situation as a whole.

Question 17

A manager is considering purchasing new computers for her department.The manager spends time assessing the computers her department now has.Which stage of the decision-making process is she going through?
A)identification of a problem
B)identification of decision criteria
C)development of alternatives
D)implementation of an alternative

Accepted Answer

The manager is in the initial stage of the decision-making process where she is identifying a problem or need, which is to purchase new computers for her department.

Question 18

For a high-tech bicycle buyer, decision criteria would be determined by ________.
A)whatever most bike buyers recommend
B)expert ratings in bike magazines
C)technical specifications
D)personal preferences of the buyer

Accepted Answer

The answer of For a high-tech bicycle buyer, decision criteria...

Question 19

A scientist cites two studies that show a positive effect for her drug and ignores five other studies that show a negative effect.Which error or bias is she committing?
A)hindsight
B)anchoring effect
C)confirmation bias
D)self-serving

Accepted Answer

The scientist is committing confirmation bias by only using studies that confirm her beliefs and ignoring those that contradict them.

Question 20

A banker opts for short-term gain despite indications that his decision might not pay off in the long run.Which error or bias is the banker guilty of?
A)overconfidence
B)immediate gratification
C)selective perception bias
D)representation

Accepted Answer

The banker is guilty of the immediate gratification bias, where he is prioritizing short-term gains over long-term benefits.

Quiz 4: Foundations of Decision Making

Which of the following defines a problem in the decision-making process?

After purchasing new computers for her department, a manager is now comparing the performance of the new computers to the computers they replaced.Which stage of the decision-making process is she carrying out?

A manager can faithfully execute the decision-making process but still end up with nothing of value if ________.

What is a heuristic?

Decision making begins with ________.

One legislator sees decreased tax revenue as the key problem in the budget.A second legislator sees increased spending as the problem.Each of these legislators has a(n) ________.

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

Because they are not systematic or comprehensive, using heuristics in place of an eight-step decision-making process can lead to ________.

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

The decision-making process consists of a series of eight steps that identify a problem and work toward ultimately ________.

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?

A manager is determining what kind of new computers she should purchase for her department.She has made a list of five different computer models for consideration.Which stage of the decision-making process is this?

To identify a problem, a manager ________.

In allocating weights to the decision criteria, which of the following is most helpful to remember?

Which of the following is LEAST likely to be a decision criterion for a high-tech bicycle buyer who cares primarily about performance?

Which of the following is NOT a common decision-making error or bias?

A manager is considering purchasing new computers for her department.The manager spends time assessing the computers her department now has.Which stage of the decision-making process is she going through?

For a high-tech bicycle buyer, decision criteria would be determined by ________.

A scientist cites two studies that show a positive effect for her drug and ignores five other studies that show a negative effect.Which error or bias is she committing?

A banker opts for short-term gain despite indications that his decision might not pay off in the long run.Which error or bias is the banker guilty of?