Question 1

If a manager makes a decision and has a computer program written to embody the decision,the manager is apparently dealing with a programmed decision.

Accepted Answer

A programmed decision involves a decision that can be made by following a set of rules or procedures that can be turned into a computer program. If a manager has a computer program written to embody a decision, it is a programmed decision.

Question 2

Programmed decisions are routine decisions that deal with factors that are familiar and have occurred in the past.

Accepted Answer

Programmed decisions are repetitive and routine decisions that are made based on the existing policies, procedures, and past experiences. These decisions follow a predefined set of guidelines and do not require much creativity or analytical skills. Examples of programmed decisions include inventory management, pricing strategies, and employee scheduling.

Question 3

When the bell rings at a firehouse,the firefighters make programmed decisions.

Accepted Answer

When the bell rings at a firehouse, the firefighters have trained and practiced extensively to know exactly what to do in response to the signal. Their response is typically automatic and follows predetermined procedures, making it a programmed decision.

Question 4

Inherent in problem recognition is the need to define loosely what the problem is.

Accepted Answer

The answer of Inherent in problem recognition is the need...

Question 5

Citicorp settled a civil lawsuit by the SEC for $75 million,which was less than 3% of its quarterly net income.Citicorp chose to settle,a state of certainty rather than go to trial with a state of uncertainty.

Accepted Answer

The statement correctly states that Citicorp settled a civil lawsuit with the SEC for $75 million, which was less than 3% of its quarterly net income. It also correctly states that Citicorp chose to settle, which would provide a state of certainty rather than go to trial with a state of uncertainty.

Question 6

Stock markets react more positively to certain bad news,like fines,than to uncertain times of not knowing what will happen.

Accepted Answer

Despite bad news, such as fines, indicating a negative event, it provides clarity and certainty to the market which can lead to a more positive reaction compared to uncertain events.

Question 7

The proper sequence for evaluating a decision alternative is feasibility,satisfactoriness,and probable consequences.

Accepted Answer

The sequence involves first assessing if the decision is feasible, then if it satisfactorily meets the objectives, and finally evaluating the probable consequences of implementing the decision.

Question 8

Alicia has just realized that her marketing group will not be reaching its sales targets this quarter.With this realization,Alicia is using the "Evaluating Alternatives" step in the rational decision-making process.

Accepted Answer

Alicia is in the "Identifying the Problem" step, as she has recognized an issue with not meeting sales targets.

Question 9

Evidence-based management recommends facing the hard facts and building a culture in which people are encouraged to tell the truth,but only if it's pleasant.

Accepted Answer

The statement contradicts itself by saying people should only tell the truth if it's pleasant, which goes against the idea of facing hard facts and encouraging honesty in evidence-based management.

Question 10

The least common decision making condition is the state of certainty.

Accepted Answer

The state of certainty is the condition in which the decision maker has complete information about the future and the outcomes of each decision. This is the least common condition because it is rarely the case that a decision maker has perfect information.

Question 11

Choosing between alternatives is risk assessment.

Accepted Answer

Risk assessment involves identifying, analyzing, and evaluating risks, while choosing between alternatives is decision-making, which may involve considering risks but is not solely about assessing them.

Question 12

Tony Hayward,former CEO of BP,made statements and decisions about vacations during the oil spill that led to him stepping down as CEO.This shows he used the classical decision making model.

Accepted Answer

The classical decision-making model involves making decisions based on complete information, rational analysis, and logical reasoning. Hayward's decisions during the oil spill crisis were criticized for being poorly timed and insensitive, suggesting a lack of complete information or rational analysis.

Question 13

The steps in the decision-making process outlined in the text are most closely associated with the classical model of decision making.

Accepted Answer

The classical model of decision making involves a rational and logical process, which includes identifying the problem, gathering and analyzing information, identifying alternatives, selecting the best option, and implementing and evaluating the solution. The steps outlined in the text closely follow this classical model.

Question 14

Ryan is trying to hire a new engineer.She has all of the qualifications he wants,with one exception.As a decision alternative,this engineer fails the test of feasibility.

Accepted Answer

Feasibility in hiring typically refers to whether a candidate can be realistically hired given constraints like budget, availability, or legal requirements. If the candidate meets all qualifications except one, it doesn't necessarily mean they fail the feasibility test; it depends on the nature of the missing qualification and other constraints.

Question 15

One component of problem recognition is defining precisely what the problem is.

Accepted Answer

Defining the problem precisely is an important component of problem recognition because it helps to clearly identify the issue and determine the appropriate course of action to address it. Without a clear understanding of what the problem is, it's difficult to come up with effective solutions.

Question 16

Zhenfu invested his savings in a bank certificate of deposit because that is where he has always put his savings,and because he is very concerned about the safety of his investment.Zhenfu knows at the end of two years he will have $52,546.73.He is operating under the decision-making condition known as risk.

Accepted Answer

The fact that Zhenfu invested in a bank certificate of deposit shows that he is operating under the decision-making condition known as certainty, where the outcome is known with complete confidence. Risk involves uncertainty about the outcome of a decision.

Question 17

The ability to assign probability estimates to the various outcomes in a decision-making situation is associated with the decision-making condition known as risk.

Accepted Answer

The ability to assign probability estimates is a characteristic of decision-making under risk, which refers to situations in which the probabilities of different outcomes are known or can be estimated.

Question 18

Iftikhar is trying to decide where to invest company funds and has determined that there are only four options open to him that will provide a guaranteed return on the funds.He is operating under the decision-making condition known as certainty.

Accepted Answer

The definition of certainty in decision-making is when the outcome of every alternative is known with complete accuracy. In this scenario, Iftikhar has already determined that there are only four guaranteed options for investment, indicating that he has complete knowledge and confidence in the outcome of each alternative, therefore operating under the condition of certainty.

Question 19

Decision making can refer to either a specific act or a general process.

Accepted Answer

Decision making can refer to a specific act of making a decision in a particular situation or a general process of consistently making sound decisions.

Question 20

A plant manager notices that overtime seems to be excessive.This will stimulate a decision.

Accepted Answer

The observation of excessive overtime will likely spark a decision to investigate and address the issue.

Quiz 4: Managing Decision Making