Question 1

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 employees
C)seeks confirmation from other managers
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 situation or state of affairs with a standard or goal to see where there is a deviation or gap. This will help the manager pinpoint the problem and come up with a solution to address it. Options A and C are not necessarily effective in identifying a problem, and option B only addresses employee satisfaction and may not identify other types of problems.

Question 2

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

Accepted Answer

Decision making involves identifying a problem or a decision that needs to be made. Without identifying the problem or decision, it is not possible to move forward with analyzing or selecting alternatives.

Question 3

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, where she is generating different options (in this case, computer models) to consider for her decision. This stage involves creating a list of possible solutions or choices before evaluating them.

Question 4

Sondra has determined that the speed of the system she settles on is twice as important as the capacity of the system.Which stage of the decision-making process is she carrying out?
A)Allocation of weights to criteria.
B)Implementing the alternative.
C)Identifying the problem.
D)Selecting an alternative.

Accepted Answer

Sondra is prioritizing the criteria for her decision by assigning different weights to them. She has determined that speed is twice as important as capacity, meaning it will carry more weight in her decision-making process. This is a step in the allocation of weights to criteria stage.

Question 5

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)Evaluation of decision effectiveness.
B)Analysis of alternatives.
C)Selection of an alternative.
D)Implementation of an alternative.

Accepted Answer

The manager is evaluating the effectiveness of the decision to purchase new computers by comparing the performance of the new computers to the ones they replaced. This is part of the evaluation stage of the decision-making process. The other options do not fit the scenario. Analysis of alternatives would involve considering and comparing different options before making a decision, selection of an alternative would involve choosing a specific option from the alternatives analyzed, and implementation of an alternative would involve putting the chosen option into action.

Question 6

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

Accepted Answer

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

Question 7

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

Accepted Answer

Managers often resort to using heuristics because they seem to eliminate ambiguity, they seem to eliminate complexity, and they save time. They do not, however, thoroughly explore all alternatives.

Question 8

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)Selecting an alternative.
B)Development of alternatives.
C)Identification of a problem.
D)Evaluation of decision effectiveness.

Accepted Answer

The manager is currently identifying a problem, which is the performance of the current computers in her department.

Question 9

Sondra has decided to collect information about the features the company needs for its system.Which stage of the decision-making process is she carrying out?
A)Identify decision criteria.
B)Evaluate her decision's effectiveness.
C)Identify alternative solutions.
D)Allocate weights to the criteria.

Accepted Answer

Sondra is in the stage of identifying decision criteria, which is the first stage of the decision-making process. This involves determining what factors are important in making the decision, and gathering information on those factors. Alternative solutions are not yet being considered, and weights are not yet being allocated to the criteria. Evaluating the effectiveness of the decision comes later in the process.

Question 10

In decision making,a problem can be defined as a discrepancy between what exists and what the problem-solver desires to exist.

Accepted Answer

This is the generally accepted definition of a problem in decision making. It reflects the idea that a problem is a situation that requires action to bridge the gap between the current state and the desired state.

Question 11

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)Confirmation bias.
B)Anchoring effect.
C)Overconfidence bias.
D)Framing bias.

Accepted Answer

The scientist is committing confirmation bias by only citing studies that confirm her hypothesis and ignoring conflicting evidence.

Question 12

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)Selective perception bias.
B)Immediate gratification.
C)Representation.
D)Overconfidence.

Accepted Answer

The banker's decision to opt for short-term gain despite indications that it might not pay off in the long-run is a classic example of immediate gratification bias, where the individual prioritizes immediate benefits over long-term success.

Question 13

A manager chooses to ignore a rigorous decision-making process and select 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)The manager should have included 'trust' as a criterion.
B)Monitor A is really the better choice.
C)The manager must have made a mistake in calculating his weighted criteria.
D)Monitor B is really the better choice.

Accepted Answer

If the manager chose to trust a certain company more, then 'trust' should have been included as a criteria in the decision-making process. The decision was not made purely based on rational analysis, but also on subjective perception. Therefore, including 'trust' as a criterion would have made the decision-making process more comprehensive and rational.

Question 14

Which of the following defines a problem in the decision-making process?
A)A discrepancy between the ideal and the practical.
B)A hindsight bias has been identified.
C)A discrepancy between what exists and what the decision-maker desires to exist.
D)When 'rules of thumb' are not used.

Accepted Answer

A problem in the decision-making process is defined as a discrepancy between what exists (the current situation or problem) and what the decision-maker desires to exist (the ideal situation or solution). This is because decision-making is often about identifying and solving problems or addressing challenges. Option A describes the ideal vs practical, which is a related concept but not the definition of a problem in the decision-making process. Option B describes a cognitive bias that can impact decision-making, but it does not define a problem in the process itself. Option D describes a situation in which decision-makers are not using heuristics or intuitive methods, but this does not necessarily constitute a problem in decision-making.

Question 15

The very last step Sondra should take,according to the decision-making process,is to ________.
A)implement the alternative
B)select alternatives
C)evaluate the decision's effectiveness
D)analyse alternative solutions

Accepted Answer

After making a decision and implementing an alternative, it is important to evaluate the decision's effectiveness to determine if the desired outcome was achieved. This allows for adjustments to be made if necessary and helps improve decision-making skills for future situations.

Question 16

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

Accepted Answer

A heuristic is a shortcut or rule of thumb that is used for decision making. It is not a totally unreliable or purely intuitive method of decision making, nor is it a complicated and systematic method.

Question 17

Which of the following would be a fairly objective criterion by which a bicycle buyer could assess different bike models?
A)Handling.
B)Style.
C)Weight.
D)Quality of craftsmanship.

Accepted Answer

The weight of a bike is a measurable and objective criterion that can have a significant impact on the performance of the bike, making it easier or harder to ride and handle. The other options (handling, style, quality of craftsmanship) are more subjective and can vary depending on individual preferences and opinions.

Question 18

According to the decision-making process,the first step Sondra should take is to ________.
A)evaluate her decision's effectiveness
B)identify decision criteria
C)identify the problem
D)analyse alternative solutions

Accepted Answer

In the decision-making process, the first step is to identify the problem. Only then can Sondra move on to identifying decision criteria, analyzing alternative solutions, and evaluating the effectiveness of her decision.

Question 19

Sondra has decided to purchase a new system.After obtaining permission,she has ordered the system from a reputable company.Which stage of the decision-making process is she carrying out in making the order?
A)Implementing the alternative.
B)Selecting an alternative.
C)Identifying the problem.
D)Analysing alternative solutions.

Accepted Answer

Sondra has already identified the problem and analysed alternative solutions. She has also selected an alternative. Ordering the system from the reputable company is the implementation of her decision. Therefore, she is carrying out the stage of implementing the alternative.

Question 20

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

Accepted Answer

Heuristics rely on mental shortcuts and can lead to errors and biases in decision making. They are not as thorough or systematic as an eight-step decision-making process.

Quiz 3: Foundations of Decision Making

To identify a problem,a manager ________.

Decision making begins with ________.

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?

Sondra has determined that the speed of the system she settles on is twice as important as the capacity of the system.Which stage of the decision-making process is she carrying out?

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?

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

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

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?

Sondra has decided to collect information about the features the company needs for its system.Which stage of the decision-making process is she carrying out?

In decision making,a problem can be defined as a discrepancy between what exists and what the problem-solver desires to exist.

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?

A manager chooses to ignore a rigorous decision-making process and select 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?

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

The very last step Sondra should take,according to the decision-making process,is to ________.

What is a heuristic?

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

According to the decision-making process,the first step Sondra should take is to ________.

Sondra has decided to purchase a new system.After obtaining permission,she has ordered the system from a reputable company.Which stage of the decision-making process is she carrying out in making the order?

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