Question 1

When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments,they are exhibiting the ________.

Accepted Answer

Confirmation bias refers to the tendency of individuals to seek and favor information that supports their existing beliefs and judgments while ignoring or discounting information that contradicts them. This bias can lead to flawed decision-making and prevent individuals from considering alternative perspectives and possibilities.

Question 2

Whenever anyone praises Mark for his good performance,he has the tendency to attribute his success to his personal qualities such as his ability to thrive under pressure and his eye for detail.However,any negative performance feedback is always met with excuses such as unsupportive team members or insufficient time.This is an example of the ________.

Accepted Answer

This is an example of self-serving bias, which is the tendency to attribute successes to one's internal qualities while blaming outside factors for failures. Mark is taking credit for his good performance but deflecting responsibility for his negative performance. This bias serves to protect one's self-esteem and maintain a positive self-image.

Question 3

Optimistic managers follow a maximax choice when they ________.

Accepted Answer

Optimistic managers believe that the best possible outcome will occur, so they choose the option that maximizes the maximum potential payoff. This decision rule is known as maximax.

Question 4

________ is a situation in which a decision maker cannot make reasonable probability estimates.

Accepted Answer

Uncertainty is a situation where the decision maker cannot make reasonable probability estimates. In this situation, the outcome is unknown and the decision maker lacks complete information or cannot accurately predict what will happen in the future. Risk, on the other hand, is a situation where the decision maker can make reasonable probability estimates, and can evaluate the likelihood of different outcomes based on available information. Necessity and certitude do not relate to the inability to make probability estimates.

Question 5

The ________ happens when decisions makers tend to remember events that are the most recent and vivid in their memory.

Accepted Answer

The availability bias occurs when decision makers tend to remember events that are the most recent and vivid in their memory. This bias can lead to overestimating the likelihood of rare events and underestimating the likelihood of more common events.

Question 6

The ________ describes how decision makers fixate on initial information as a starting point and then,once set,fail to adequately adjust for subsequent information.

Accepted Answer

The anchoring effect refers to the tendency of decision makers to rely too heavily on the first piece of information they receive when making subsequent decisions. This can lead to overconfidence in the initial information and a failure to adequately adjust for subsequent information.

Question 7

The manager of an apparel store estimates how much to order for the current spring season based on last spring's sales figures.The store manager is operating under which of the following decision-making conditions?

Accepted Answer

The manager is making an estimate based on previous sales figures, which involves some level of risk as there is no guarantee that the current season's sales will be the same as last spring's. Therefore, the manager is operating under the decision-making condition of risk.

Question 8

Sarah's sales figures show that she has been the top performer in her department for the last eight months.Two months prior to her annual performance review,Sarah's sales numbers fell due to her ill health causing her manager to rate her performance as just satisfactory.This is an example of the ________.

Accepted Answer

The answer of Sarah's sales figures show that she has...

Question 9

Sophie is in charge of recruitment at her company.During a particular interview,the first thing Sophie noticed about the applicant was that he was improperly attired.Though the candidate possessed the necessary qualifications and effectively answered all her questions,Sophie rejected him.This is an example of the ________.

Accepted Answer

The answer of Sophie is in charge of recruitment at...

Question 10

What is the psychological orientation of a decision maker who makes a "maximin" choice?

Accepted Answer

A "maximin" choice strategy is used by someone who prepares for the worst-case scenario, indicating a pessimistic outlook. This strategy involves choosing the option with the best of the worst possible outcomes, reflecting a cautious approach to decision-making under uncertainty.

Question 11

The ________ occurs when decision makers select and highlight certain aspects of a situation while excluding others.

Accepted Answer

Framing bias occurs when decision makers selectively present information or frame it in a certain way, leading to a potentially biased decision. This can be done intentionally or unintentionally, but can greatly impact the outcome of decision making. The other answer choices do not accurately describe this phenomenon.

Question 12

If an individual knows the price of three similar cars at different dealerships,he is operating under which of the following decision-making conditions?

Accepted Answer

The answer of If an individual knows the price of...

Question 13

When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance,they are exhibiting the ________.

Accepted Answer

The overconfidence bias refers to the tendency of decision makers to have excessively high confidence in their own abilities and knowledge, often leading them to underestimate risks or overestimate the likelihood of success. This bias can be particularly problematic in business and organizational decision making, where objective data and analysis are often critical for success.

Question 14

Which of the following best describes the psychological orientation of an individual making a "maximax" choice?

Accepted Answer

A "maximax" choice involves selecting the option that maximizes potential gain, even if it also involves a high level of risk. This type of decision-making is typically associated with optimism and a willingness to take risks in pursuit of maximum gain.

Question 15

Rules of thumb that managers use to simplify decision making are known as ________.

Accepted Answer

Heuristics are mental shortcuts or rules of thumb that managers (and individuals) use to simplify decision making. These shortcuts can be helpful in certain situations but can also lead to biases and errors in decision making. Folksonomies are user-generated tagging systems used for categorizing online content. Algorithms are step-by-step procedures for solving a problem or making a decision. Sophisms are deceptive and misleading arguments or reasoning.

Question 16

The ________ thinking style is characterized by a preference for internal sources of information and processing this information with internal insights,feelings,and hunches to guide decisions and actions.

Accepted Answer

The answer of The ________ thinking style is characterized by...

Question 17

The ________ thinking style is characterized by a person's preference for using external data and facts and processing this information through rational,logical thinking to guide decisions and actions.

Accepted Answer

Linear thinking involves analyzing data and facts to arrive at logical and rational decisions. This style of thinking is analytical, systematic and tends to follow clear, structured processes to arrive at a conclusion. It is often used in fields such as science, engineering, and mathematics.

Question 18

Lower-level managers typically confront ________.

Accepted Answer

Lower-level managers are responsible for implementing the policies and plans developed by top-level management. They are involved in day-to-day operational planning and decision making that involves routine, structured problems. As a result, they typically face programmed decisions, which are those that are repetitive, routine, and well-defined.

Question 19

________ is a situation where a manager has the ability to make accurate decisions because the outcome of every alternative is known.

Accepted Answer

Certainty refers to a situation where the outcome of every alternative is known. This means that a manager can make accurate decisions without any doubts or uncertainty.

Question 20

When problems are ________,managers must rely on ________ in order to develop unique solutions.

Accepted Answer

When problems are unstructured, they do not have a clear solution or specific approach. In such a scenario, managers must rely on nonprogrammed decision making, which involves developing unique solutions based on a combination of intuition, creativity, and judgement. Structured problems, on the other hand, have a clear and known solution and can be addressed using programmed decision making. Intuition alone is not enough to develop unique solutions in unstructured problems, as other factors such as creativity and judgement also come into play.

Quiz 6: Managers As Decision Makers