Question 1

When problems are ________,managers must rely on ________ in order to develop unique solutions.
A)structured; nonprogrammed decision making
B)structured; pure intuition
C)unstructured; nonprogrammed decision making
D)unstructured; programmed decision making

Accepted Answer

When problems are unstructured, they do not have a clear solution and require nonprogrammed decision making, which involves identifying unique solutions. Structured problems have clear solutions and can be addressed with programmed decision making. Therefore, option A and D are incorrect. Option B suggests using pure intuition, which is not a reliable approach for making decisions.

Question 2

________ is a situation where a manager has the ability to make accurate decisions because the outcome of every alternative is known.
A)Certainty
B)Risk
C)Bureaucracy
D)Contingency

Accepted Answer

When a manager has complete and reliable information about an event, they are said to have certainty, and thus they are able to make accurate and informed decisions. In this scenario, the outcome of each alternative is known in advance, giving the manager full confidence in their decision-making process.

Question 3

Lower-level managers typically confront ________.
A)unstructured problems
B)new and unusual problems
C)programmed decisions
D)nonprogrammed decisions

Accepted Answer

Lower-level managers typically handle routine activities of the organization which include programmed decisions. Programmed decisions are those that are repetitive and routine that can be made by following established rules and procedures. These decisions are made in a structured environment and require a low level of innovation and creativity.

Question 4

A programmed decision is a repetitive decision that can be handled by a routine approach.

Accepted Answer

A programmed decision is one in which a routine approach can be used since it is a repetitive decision with well-established guidelines and procedures for handling.

Question 5

Discuss structured problems,programmed decisions,unstructured problems,and nonprogrammed decisions.

Accepted Answer

The answer of Discuss structured problems,programmed decisions,unstructured problems,and nonprogrammed decisions....

Question 6

It is time for Jane to order aluminum tubing again.She typically orders from one of three vendors.She knows the price,delivery time,and quality of each vendor.In this situation,Jane has ________.
A)certainty
B)uncertainty
C)risk
D)structure

Accepted Answer

Jane has certainty because she knows the price, delivery time, and quality of each vendor, which means there is no risk or uncertainty involved in her decision-making process.

Question 7

Depending on the weather and the amount of advertising,Kyle has developed six scenarios for his summer profits from his lawn care business.His business has failed to reach his expectations in the past,so he fears the worst.Kyle will likely choose the option that ________.
A)maximizes the maximum possible payoff
B)maximizes the minimum possible payoff
C)minimizes the maximum regret
D)minimizes the minimum losses

Accepted Answer

Kyle's fear of not meeting expectations suggests he would prefer a strategy that ensures the best outcome among the worst-case scenarios, which is to maximize the minimum possible payoff. This approach is known as a maximin strategy, focusing on making the best of the worst-case scenario.

Question 8

What is the psychological orientation of a decision maker who makes a "maximin" choice?
A)optimist
B)realist
C)pessimist
D)idealist

Accepted Answer

A decision maker who makes a "maximin" choice is someone who minimizes the potential loss or regrets associated with a decision. They are more focused on avoiding negative outcomes rather than maximizing potential gains, and therefore have a more cautious and pessimistic orientation. Option C, pessimist, is the best choice as it captures this orientation.

Question 9

Discuss the three types of programmed decisions that a manager depends on to resolve structured problems.

Accepted Answer

The answer of Discuss the three types of programmed decisions...

Question 10

Nonprogrammed decision making relies on procedures,rules,and policies.

Accepted Answer

Nonprogrammed decision making typically involves unique and complex situations that require creativity and flexibility, and may not have established procedures, rules, or policies to rely on.

Question 11

James has calculated the possible profits from three different scenarios for the expansion of his recreation park,each for a different amount of advertising and promotion.He has chosen to implement the scenario that offers the greatest profit.James has decided to ________.
A)maximax
B)maximin
C)minimax
D)minimin

Accepted Answer

Maximax decision making involves choosing the option that offers the highest possible payoff. In this case, James has calculated the profits from three different scenarios and has chosen the one that offers the greatest profit. This aligns with the maximax decision making approach, making choice A the best option.

Question 12

Rules and procedures are the same.

Accepted Answer

Rules refer to specific guidelines or principles to be followed in a particular situation, whereas procedures are a series of steps to be taken to accomplish a task or to make a process more efficient. Therefore, rules and procedures are not the same.

Question 13

In the late 1970s,Apple launched the Apple computer for individual use.It was a radical concept; there was no precedent for this type of product.Under these circumstances,Apple faced a situation of ________.
A)certainty
B)uncertainty
C)risk
D)necessity

Accepted Answer

The fact that there was no precedent for the Apple computer indicates that Apple faced uncertainty in launching the product.

Question 14

A policy is an explicit statement that tells a manager what can or cannot be done.

Accepted Answer

The answer of A policy is an explicit statement that...

Question 15

Ian is a plant manager in a multi-site corporation.He often deals with situations involving new customers and new products.These are often ________.
A)non-linear problems and risky decisions
B)structured problems and programmed decisions
C)uncertain problems and linear decisions
D)unstructured problems and unprogrammed decisions

Accepted Answer

Dealing with new customers and products typically involves unstructured problems that do not have clear solutions or decision-making processes. This requires unprogrammed decisions that are not based on pre-established procedures or routines.

Question 16

Risk is the condition in which a decision maker is able to estimate the likelihood of certain outcomes.

Accepted Answer

This statement accurately defines the concept of risk as a situation where a decision maker can assess and quantify the probability of specific results.

Question 17

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?
A)uncertainty
B)risk
C)structure
D)certainty

Accepted Answer

The manager is using historical data to make a decision, but there is still some level of risk involved because factors such as changing consumer tastes, competition, and economic conditions could affect sales in the current season. Therefore, the manager is operating under the condition of risk.

Question 18

________ is a situation in which a decision maker cannot make reasonable probability estimates.
A)Necessity
B)Risk
C)Uncertainty
D)Certainty

Accepted Answer

Uncertainty is a situation in which the outcome of an event or decision is unknown, and the decision maker cannot make reasonable probability estimates about the likelihood of different outcomes. This is in contrast to situations of risk or certainty, where the decision maker has more information and can use probabilities to make informed choices.

Question 19

Nonprogrammed decisions ________.
A)involve standardized solutions
B)are usually made by lower-level managers
C)are associated with clear and specific goals
D)are unique and nonrecurring

Accepted Answer

Nonprogrammed decisions are unique and nonrecurring, which means they cannot be solved through standardized solutions. These decisions are usually made by higher-level managers because of the complexity and importance of the decision-making process. They are also associated with uncertain and ambiguous goals, and require creative and innovative solutions.

Question 20

Which of the following best describes the psychological orientation of an individual making a "maximax" choice?
A)optimist
B)cynic
C)pessimist
D)defeatist

Accepted Answer

A "maximax" decision maker seeks to maximize the best possible outcome or gain the maximum benefit from a decision, regardless of the risks or potential losses. This orientation is most likely to be adopted by an optimist who is confident in their ability to achieve the best possible outcome.

Quiz 2: Managers As Decision Makers

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

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

Lower-level managers typically confront ________.

A programmed decision is a repetitive decision that can be handled by a routine approach.

Discuss structured problems,programmed decisions,unstructured problems,and nonprogrammed decisions.

It is time for Jane to order aluminum tubing again.She typically orders from one of three vendors.She knows the price,delivery time,and quality of each vendor.In this situation,Jane has ________.

Depending on the weather and the amount of advertising,Kyle has developed six scenarios for his summer profits from his lawn care business.His business has failed to reach his expectations in the past,so he fears the worst.Kyle will likely choose the option that ________.

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

Discuss the three types of programmed decisions that a manager depends on to resolve structured problems.

Nonprogrammed decision making relies on procedures,rules,and policies.

James has calculated the possible profits from three different scenarios for the expansion of his recreation park,each for a different amount of advertising and promotion.He has chosen to implement the scenario that offers the greatest profit.James has decided to ________.

Rules and procedures are the same.

In the late 1970s,Apple launched the Apple computer for individual use.It was a radical concept; there was no precedent for this type of product.Under these circumstances,Apple faced a situation of ________.

A policy is an explicit statement that tells a manager what can or cannot be done.

Ian is a plant manager in a multi-site corporation.He often deals with situations involving new customers and new products.These are often ________.

Risk is the condition in which a decision maker is able to estimate the likelihood of certain outcomes.

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?

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

Nonprogrammed decisions ________.

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