Question 1

Managers who decide allocations of tight financial resources will likely use which of the following decision-making models?

Accepted Answer

The answer of Managers who decide allocations of tight financial...

Question 2

Which of the following is not a group decision-making asset?

Accepted Answer

Favored alternative is not considered an asset in group decision-making because it implies a preconceived preference that might bias the process, rather than an outcome derived from collective deliberation and analysis of all available information.

Question 3

Which of the following statements is not true about group decision-making assets and liabilities?

Accepted Answer

Group decision making often involves thorough discussions, consideration of multiple viewpoints, and consensus-building, which can be time-consuming. Therefore, it is not typically characterized by a fast response, making statement B incorrect in the context of group decision-making assets and liabilities.

Question 4

Which of the following statements is a group decision-making liability?

Accepted Answer

Each option (A, B, and C) describes a common liability or drawback associated with group decision-making processes. Social pressures to conform (A), domination by one person (B), and the time-consuming nature of group decisions (C) are all potential challenges that can affect the effectiveness and efficiency of group decision-making.

Question 5

Which of the following does not occur as the social process for decision making goes from authoritative to group approaches?

Accepted Answer

As decision-making processes shift from authoritative to group approaches, the complexity of social interactions increases, potential for conflict rises due to differing opinions, and group members gain a better understanding of the decision problem due to collective input. However, the time to make a decision typically increases because of the need to discuss and reconcile these differing opinions, not decreases.

Question 6

Which of the following is true about the Vroom-Yetton model (a normative model of decision making)?

Accepted Answer

The Vroom-Yetton model is a normative model of decision making that indeed uses a set of rules to ensure decision quality and acceptance, involves the decision maker assessing the problem's characteristics through diagnostic questions, and selects the decision-making process that best fits the criteria for maintaining decision quality and acceptance.

Question 7

The judgment bias that describes the tendency to recall and use information easily retrieved from memory is

Accepted Answer

The availability heuristic is a mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method or decision. This bias occurs because information that is more readily available in memory is judged to be more frequent or important.

Question 8

The judgment bias that leads a decision maker to compare a current event to past events about which the person has knowledge is

Accepted Answer

The representativeness heuristic is a judgment bias where a decision maker assesses the likelihood of an event by comparing it to an existing prototype in their mind, which often involves relating the current situation to similar past events.

Question 9

A heuristic decision makers use to get a starting point for a decision and adjust beyond that point is

Accepted Answer

The anchoring and adjustment heuristic is used by decision makers to get a starting point for a decision and then adjust from that point based on additional information. This heuristic involves starting with an initial estimate (the anchor) and making adjustments to that number to reach a final decision or estimate.

Question 10

When entering into salary negotiations, a new employee requests a figure higher than what she really wants, and the manager offers a figure lower that what she is prepared to offer. These people are using which of the following heuristics?

Accepted Answer

The anchoring and adjustment heuristic is at play here, where both parties start with an initial number (anchor) and adjust from that point during negotiations.

Question 11

Most retail outlets tell customers an item's original price, in addition to the sale price, to get customers to believe they are getting a good price. Retail managers are using which of the following heuristics?

Accepted Answer

Retail managers are using the anchoring and adjustment heuristic by presenting the original price as an anchor, influencing customers' perception of the sale price as a good deal by adjusting from that initial reference point.

Question 12

A salesperson makes a single large mistake in a presentation to prospective clients. The total presentation is of high quality other than the one mistake. Clients do not buy anything from the salesperson because of this error. The clients are using which of the following judgment biases?

Accepted Answer

The answer of A salesperson makes a single large mistake...

Question 13

People often overestimate the frequency of plane crashes because these events are vivid and newsworthy. This is an example of which of the following heuristics?

Accepted Answer

This is an example of the availability heuristic, where people judge the frequency or probability of an event by how easily examples of the event come to mind. Plane crashes are rare but highly publicized, making them more memorable and leading people to overestimate their frequency.

Question 14

A manager decides to hire the applicant she is currently interviewing and does not seek negative information about that applicant. This is known as

Accepted Answer

The manager is exhibiting the confirmation trap, where she is seeking information that confirms her current belief or decision (in this case, the decision to hire the applicant) and ignoring or not seeking information that could disprove it.

Question 15

Which of the following is not a heuristic used by decision makers?

Accepted Answer

Groupthink is not a heuristic but a psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. Heuristics like anchoring and adjustment, representativeness, and availability are mental shortcuts that help individuals make decisions or judgments quickly but can sometimes lead to errors or biases.

Question 16

When a manager must choose between two downsizing plans in which either 400 workers will be laid off or 600 workers might be laid off, the manager will most likely be ______________ in approaching the problem.

Accepted Answer

The answer of When a manager must choose between two...

Question 17

When a manager must choose between two downsizing plans in which either 200 jobs will be saved for certain or 600 jobs might be saved, the manager will most likely be ______________ in approaching the problem.

Accepted Answer

Given the choice between a certain outcome and a gamble, people tend to prefer the certain outcome, which is indicative of risk aversion. In this scenario, choosing the certain saving of 200 jobs over the possibility of saving 600 jobs reflects a preference for avoiding risk.

Question 18

Which of the following does not contribute to escalation of commitment to a losing course of action?

Accepted Answer

Inconsistent decision behavior does not contribute to escalation of commitment to a losing course of action. Escalation of commitment typically occurs when individuals continue to invest in a decision despite evidence of its ineffectiveness, often due to factors like ego defensiveness, a desire to appear rational, and the need for justification, rather than inconsistency in decision-making.

Question 19

A manager hired an employee whose performance is not up to the organization's standards. The manager sends the employee to several costly training seminars and devotes much time to individually counseling the employee, but the employee's performance does not improve. This is an example of

Accepted Answer

The manager's continued investment in the employee despite no improvement in performance exemplifies escalation of commitment, where more resources are committed in hopes of reversing a failing course of action.

Question 20

Which of the following is false about groupthink?

Accepted Answer

Groupthink is more likely to occur in groups that have been working together for a long time, not a short time, because the members develop a strong sense of camaraderie and a desire to maintain group harmony, which can suppress dissenting viewpoints.

Quiz 14: Decision-Making and Problem-Solving Processes