Question 1

All of the following are examples of nonprogrammed decisions,except:

Accepted Answer

Changing the light bulbs when they burn out is a programmed decision because it is a routine task that is performed in the same way each time.

Question 2

A cognitive bias resulting from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode is known as:

Accepted Answer

Representative bias occurs when individuals generalize from a small sample or a single vivid event, assuming it represents a larger population or trend.

Question 3

The ability to make sound decisions based on one's experience and immediate feelings about the information at hand is called:

Accepted Answer

Intuition refers to the ability to understand or know something immediately based on one's feelings and experiences, without the need for conscious reasoning.

Question 4

According to the text,when Richard Branson launched the Pulse MP3 to compete with Apple's iPod,this was an example of:

Accepted Answer

Richard Branson's decision to launch the Pulse MP3 to compete with Apple's iPod, despite the iPod's strong market presence, reflects an overconfidence bias and illusion of control, where he may have overestimated his ability to succeed in a market dominated by Apple.

Question 5

The administrative model of decision making was developed by:

Accepted Answer

The administrative model of decision making, also known as the bounded rationality model, was developed by Herbert A. Simon and James G. March.

Question 6

When Ford Canada limits its search for new suppliers to an existing set of alternatives known to the purchasing manager,they are using which decision-making strategy?

Accepted Answer

The answer of When Ford Canada limits its search for...

Question 7

A decision maker's ability to discover original and novel ideas that lead to feasible alternative courses of action is known as:

Accepted Answer

Creativity is the ability to generate new ideas and solutions.

Question 8

Errors that people make over and over and that result in poor decision making are known as:

Accepted Answer

Systematic errors are consistent, repeatable errors that occur due to inherent flaws in the decision-making process, leading to poor decisions.

Question 9

Managers who are rational in their way of thinking and have a low tolerance for ambiguity have which decision-making style?

Accepted Answer

Managers with a directive decision-making style are rational and have a low tolerance for ambiguity, focusing on efficiency and logic.

Question 10

When Walmart tried to use the same model that worked for them in the USA in the rest of the world,they were acting on which type of cognitive bias?

Accepted Answer

Walmart's assumption that a model that worked in the USA would also work in other countries is an example of representative bias, which is the tendency to assume that a sample is representative of the entire population.

Question 11

Managers who use a high degree of intuition when making decisions and have a high degree of tolerance for ambiguity have which type of decision-making style?

Accepted Answer

The conceptual decision-making style involves using intuition and having a high tolerance for ambiguity, focusing on long-term results and creative solutions.

Question 12

A cognitive bias resulting from the tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong is known as:

Accepted Answer

Prior hypothesis bias occurs when individuals make decisions based on their existing beliefs, even when new evidence contradicts those beliefs.

Question 13

Managers who use a high degree of intuition and have a low tolerance for ambiguity have a(n)___________ decision-making style.

Accepted Answer

The answer of Managers who use a high degree of...

Question 14

Which of the following is NOT one of the criteria used by managers to evaluate the pros and cons of alternative courses of action?

Accepted Answer

Prior hypothesis bias is a cognitive bias, not a criterion for evaluating alternatives.

Question 15

Managers who are rational in the way they process information but can handle more ambiguity and uncertainty have which decision-making style?

Accepted Answer

The answer of Managers who are rational in the way...

Question 16

The ability to develop a sound opinion based on one's evaluation of the importance of the information at hand is known as:

Accepted Answer

Judgment refers to the ability to make considered decisions or come to sensible conclusions, often by evaluating the importance of information.

Question 17

A manager decided to continue to purchase insurance from a company that charged high premiums,even though the manager knew that he or she could get the same coverage for less.This is an example of what type of cognitive bias?

Accepted Answer

Escalating commitment refers to the tendency to continue investing in a decision despite new evidence suggesting it may not be the best choice. The manager's decision to stick with the high-premium insurance despite knowing cheaper options exist is an example of this bias.

Question 18

Decision making occurs in all of the following activities of managing,except:

Accepted Answer

Tasking is not considered one of the primary functions of management where decision making is a key component.

Question 19

A source of cognitive bias resulting from the tendency to overestimate one's own ability to control activities and events is known as:

Accepted Answer

The illusion of control and overconfidence bias refers to the tendency of individuals to overestimate their ability to control events, leading to cognitive bias.

Question 20

Rules of thumb that simplify decision making are known as:

Accepted Answer

Heuristics are mental shortcuts or rules of thumb that simplify decision making, allowing individuals to make judgments quickly and efficiently.

Quiz 3: Managing Decision Making