Question 1

Decisions that are based on rules and guidelines are known as:

Accepted Answer

Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 2

A situation in which the number of suitable alternatives are greater than what a manager can evaluate is called _____.

Accepted Answer

March and Simon coined the term bounded rationality to describe the situation in which the number of alternatives a manager must identify is so great and the amount of information so vast that it is difficult for the manager to even come close to evaluating it all before making a decision.

Question 3

In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the ____________ decision.

Accepted Answer

The optimum decision is the most appropriate decision possible in light of what they believe to be the most desirable consequences for the organization.

Question 4

Which of the following would be considered a programmed decision by James Calloway, CEO of FSE Inc.?

Accepted Answer

Programmed decision making occurs when managers have the information they need to create rules that will guide decision making.

Question 5

The classical model specifies how decisions should be made. In other words it is:

Accepted Answer

The classical model is prescriptive, which means it specifies how decisions should be made.

Question 6

Eileen, a college professor, has to pick a textbook for an upcoming course. She has just enough time to review a few books from the many choices available. She settles for one of the books, even though the best book might be a book that she hasn't yet reviewed. What is this process called?

Accepted Answer

Satisficing is searching for and choosing an acceptable response, rather than trying to make the best decision.

Question 7

When the probabilities of alternative outcomes cannot be determined and future outcomes are unknown, there exists:

Accepted Answer

When uncertainty exists, the probabilities of alternative outcomes cannot be determined and future outcomes are unknown.

Question 8

Nonroutine decisions made in response to novel situations in business are known as:

Accepted Answer

Nonprogrammed decisions are made in response to unusual or novel opportunities and threats.

Question 9

Jordan, the manager of JT's Tasty Treats, has to decide whether to introduce a new frozen dessert that has never been sold previously. What type of decision would this represent?

Accepted Answer

Nonprogrammed decisions are made in response to unusual or novel opportunities and threats.

Question 10

Programmed decision making is a(n) ______ process.

Accepted Answer

Programmed decision making is a routine, virtually automatic process.

Question 11

Which of the following is a reason for incomplete information?

Accepted Answer

A second reason why information is incomplete is that much of the information managers have at their disposal is ambiguous information. Its meaning is not clear-it can be interpreted in multiple and often conflicting ways.

Question 12

According to the administrative model of decision making, why wouldn't managers be able to arrive at the optimum decision even if they had unlimited ability to evaluate information?

Accepted Answer

Even if managers had unlimited ability to evaluate information, they still would not be able to arrive at the optimum decision because they would have incomplete information.

Question 13

Peggy, a foreman at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours for the previous month increase by more than 15 percent over the headcount. What type of decision is this?

Accepted Answer

Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 14

When paper supplies reaches a minimum level, Ethan makes a call to the supplier to order more paper. What type of decision does this represent?

Accepted Answer

Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 15

_____ is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.

Accepted Answer

Risk is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.

Question 16

Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order to maximize discounts. What type of decision does this represent?

Accepted Answer

Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 17

Which of the following is an assumption made by the classical model?

Accepted Answer

The classical model assumes managers have access to all the information they need to make the optimum decision.

Question 18

WashUrCar, which operates five car washes, has to decide whether or not it should invest in the latest drying equipment. What type of decision does this represent for the organization?

Accepted Answer

Nonprogrammed decisions are made in response to unusual or novel opportunities and threats.

Question 19

Managers must rely on their ______ to make the best decision when faced with uncertainty and ambiguity.

Accepted Answer

In the real world, managers must rely on their intuition and judgment to make what seems to them to be the best decision in the face of uncertainty and ambiguity.

Question 20

Barbara, a school superintendent, hires an additional teacher whenever the student enrollment in a grade goes beyond 35. This can be classified as a(n) _____ decision.

Accepted Answer

Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Quiz 7: Decision Making, Learning, Creativity, and Entrepreneurship

Decisions that are based on rules and guidelines are known as:

A situation in which the number of suitable alternatives are greater than what a manager can evaluate is called _____.

In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the ____________ decision.

Which of the following would be considered a programmed decision by James Calloway, CEO of FSE Inc.?

The classical model specifies how decisions should be made. In other words it is:

Eileen, a college professor, has to pick a textbook for an upcoming course. She has just enough time to review a few books from the many choices available. She settles for one of the books, even though the best book might be a book that she hasn't yet reviewed. What is this process called?

When the probabilities of alternative outcomes cannot be determined and future outcomes are unknown, there exists:

Nonroutine decisions made in response to novel situations in business are known as:

Jordan, the manager of JT's Tasty Treats, has to decide whether to introduce a new frozen dessert that has never been sold previously. What type of decision would this represent?

Programmed decision making is a(n) ______ process.

Which of the following is a reason for incomplete information?

According to the administrative model of decision making, why wouldn't managers be able to arrive at the optimum decision even if they had unlimited ability to evaluate information?

Peggy, a foreman at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours for the previous month increase by more than 15 percent over the headcount. What type of decision is this?

When paper supplies reaches a minimum level, Ethan makes a call to the supplier to order more paper. What type of decision does this represent?

_____ is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.

Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order to maximize discounts. What type of decision does this represent?

Which of the following is an assumption made by the classical model?

WashUrCar, which operates five car washes, has to decide whether or not it should invest in the latest drying equipment. What type of decision does this represent for the organization?

Managers must rely on their ______ to make the best decision when faced with uncertainty and ambiguity.

Barbara, a school superintendent, hires an additional teacher whenever the student enrollment in a grade goes beyond 35. This can be classified as a(n) _____ decision.