Question 1

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 selectively choosing to acknowledge only the studies that support her hypothesis and ignoring those that don't. This bias can lead to flawed conclusions and hinder scientific progress.

Question 2

Why do managers often use heuristics?
A)Heuristics eliminate errors and biases.
B)Heuristics help managers explore all alternatives.
C)Heuristics simplify decision making.
D)Heuristics allow managers to identify weaknesses in their decision-making style.

Accepted Answer

Heuristics simplify decision making by allowing managers to quickly and easily make decisions based on past experiences or knowledge. While heuristics may not always result in the best decision, they are often used as a shortcut to save time and increase efficiency in decision making.

Question 3

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)Identifying decision criteria
B)Evaluating her decision's effectiveness
C)Identifying alternative solutions
D)Allocating weights to the criteria

Accepted Answer

Sondra's activity of collecting information about the needed features is part of the stage of identifying decision criteria, which involves determining the most important factors to consider in making a decision.

Question 4

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 must compare the current state of affairs with some standard or goal, which helps in recognizing if the desired outcome is being achieved or not. Comparing standards or goals can also help in identifying any deviations from the set path. Looking for unhappy employees or seeking confirmation from other managers may not always lead to identifying the problem accurately.

Question 5

All criteria are equally important in the decision-making process.

Accepted Answer

All criteria are not equally important in the decision-making process. Depending on the situation and context, certain criteria may carry more weight than others.

Question 6

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 currently exists and what the decision-maker desires to exist. This highlights the need for a decision to be made in order to bridge this gap. Options A, B, and D are not definitions of a problem in the decision-making process.

Question 7

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 decision criteria for a high-tech bicycle buyer would primarily be determined by their personal preferences, as these preferences will guide what features or specifications are most important to them.

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 identifying a problem, which is that the department's current computers may not be sufficient.

Question 9

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 mental shortcut or rule of thumb that allows individuals to make decisions quickly and efficiently, without using a more systematic decision-making process. While heuristics can be helpful in navigating complex situations, they are not always reliable and can sometimes lead to errors in judgment. However, they are often used in combination with more deliberate and thoughtful decision-making approaches, and can be useful in a variety of settings. Therefore, option B is the best choice as it accurately describes what a heuristic is.

Question 10

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 is guilty of the immediate gratification bias, as he is prioritizing short-term gain over long-term benefits, despite the potential negative consequences of his decision in the future.

Question 11

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 12

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

The first step in the decision-making process is to identify the problem or the issue that needs to be addressed. Without identifying the problem, it's challenging to move forward in the decision-making process. Therefore, Sondra should identify the problem before proceeding further.

Question 13

Which question would a manager ask when evaluating the results of her decision?
A)Did the alternative that was chosen and implemented accomplish the desired result?
B)What determines the best choice?
C)How did personal judgement influence the final decision?
D)Which alternative should be implemented first?

Accepted Answer

The manager would ask if the alternative chosen and implemented accomplished the desired result as this evaluates the effectiveness of the decision made.

Question 14

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 selected the alternative (the system from the reputable company) in the previous stage of the decision-making process. Therefore, she is currently implementing the alternative by placing the order.

Question 15

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

Accepted Answer

Decision making always begins with identifying a problem or situation that requires a decision. Without identifying a problem, there would be no need for a decision. Eliminating false alternatives, analyzing alternatives, and selecting alternatives all come later in the decision-making process.

Question 16

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 are mental shortcuts that can lead to errors and biases in decision-making, as they do not follow a systematic or comprehensive process. While they may sometimes result in more imaginative decisions, they are generally not a reliable substitute for a thorough decision-making process.

Question 17

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

The evaluation of the decision's effectiveness is the final step in the decision-making process. This involves assessing whether the chosen alternative has solved the initial problem, met the desired goals, and produced the intended results. By evaluating the decision's effectiveness, Sondra can determine if the chosen alternative was successful or if future decisions need to be made to address any unresolved issues.

Question 18

Sam is a manager who wants to determine if it is more environmentally sustainable to use email or direct mail to reach customers.What is the first step that Sam should take?
A)Analyse the strengths and weaknesses of each alternative
B)Define 'environmentally sustainable'
C)Figure out how to reduce waste generation
D)Minimise carbon emissions

Accepted Answer

The first step for Sam should be to define what is meant by "environmentally sustainable" in order to have a clear understanding of what criteria to use when evaluating email and direct mail. Once this is established, Sam can then move on to analysing the strengths and weaknesses of each alternative and assessing their environmental impact. However, without a clear definition, it may not be possible to properly evaluate which option is more sustainable.

Question 19

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 decision was rational, the manager should have included trust as a criterion in the decision-making process. Ignoring a criterion that influences the manager's decision is not a rational decision-making process. Therefore, including trust as a criterion is the best choice.

Question 20

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)Allocating weights to the criteria
B)Implementing the alternative
C)Identifying the problem
D)Selecting an alternative

Accepted Answer

Sondra is in the stage of allocating weights to the criteria, where she is assigning a higher weight to the speed criterion compared to the capacity criterion. This is an important step in the decision-making process as it helps to identify the most important criteria and prioritize them accordingly.

Quiz 3: Foundations of Decision Making

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?

Why do managers often use heuristics?

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?

To identify a problem, a manager _________.

All criteria are equally important in the decision-making process.

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

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

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?

What is a heuristic?

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 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?

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

Which question would a manager ask when evaluating the results of her decision?

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?

Decision making begins with _________.

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

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

Sam is a manager who wants to determine if it is more environmentally sustainable to use email or direct mail to reach customers.What is the first step that Sam should take?

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?

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?