Question 1

The most difficult decision environment for any manager to deal with is __________.
A)Certainty.
B)Risk.
C)Uncertainty.
D)Probability.
E)Innovation.

Accepted Answer

Uncertainty is the most difficult decision environment as it involves the highest level of unpredictability and lack of information. In this scenario, the manager has no clear idea about possible outcomes or their likelihood, which makes decision-making extremely challenging. In contrast, certainty involves a high level of predictability, risk involves some level of probability assessment, and probability involves known probabilities. Innovation may be challenging, but it is not necessarily a decision-making environment.

Question 2

An employee requests that she receive tuition reimbursement for a job-related course that she took at the local community college.This is a good example of a ________________________ problem.
A)structured
B)unstructured
C)technical
D)programmed
E)nonprogrammed

Accepted Answer

This is a programmed problem because there is likely an established organizational policy or procedure for tuition reimbursement for job-related courses. The decision-making process for handling such requests can be standardized and routine, rather than requiring individual judgment or creativity.

Question 3

__________ is the decision making stage at which people assemble the facts and information that will be helpful for problem solving.
A)Identification and problem definition
B)Generation and evaluation of alternative courses of action
C)Selection of the preferred course of action and making the "ethics double check"
D)Implementation of the decision solution
E)Evaluation of results

Accepted Answer

The generation and evaluation of alternative courses of action is the stage at which people gather information and facts to help them choose the best solution to their problem. The other stages involve different activities such as identifying the problem, selecting the preferred course of action, implementing the decision, and evaluating the results.

Question 4

A key aspect of __________ involves clarifying goals by determining exactly what a decision should accomplish.
A)Evaluation of solutions
B)Implementation of solutions
C)Problem identification and definition
D)Generation of solutions
E)Choosing a preferred solution

Accepted Answer

Clarifying goals and determining what the decision should accomplish is part of the problem identification and definition stage of the decision-making process.

Question 5

Jennie has been a sales associate at Walmart for the last ten years.One day her manager asks her to complete a task using one of the computers,but Jennie has never heard of a task that involves the use of a computer in her ten years working there,so she is not sure what to do.This is an example of an)__________ problem.
A)nonprogrammed
B)programmed
C)technological problem
D)unstructured
E)structured

Accepted Answer

The answer of Jennie has been a sales associate at...

Question 6

The __________ involves a set of activities and events that begins with identification of a problem,includes making a decision,and ends with the evaluation of results.
A)Control process
B)Organizing process
C)Leading process
D)Decision-making process
E)Negotiation process

Accepted Answer

The described process involves making decisions, indicating that decision-making is an essential aspect of the process. Therefore, the correct answer is the decision-making process (option D). The control process (option A) pertains to monitoring and adjusting ongoing activities, while the organizing process (option B) refers to structuring resources and activities to meet organizational objectives. The leading process (option C) involves directing and motivating employees to achieve those objectives. Negotiation process (option E) is a set of activities that aim to reach an agreement between two or more parties.

Question 7

Eric needed a new refrigerator.Before making a purchase,he did his research and found out what the pricing was at three different stores for the fridge he wanted to buy.Eric is operating under what type of decision-making condition?
A)risk
B)uncertainty
C)certainty
D)timely
E)nonprogrammed

Accepted Answer

Eric has perfect information about the pricing of the refrigerator at three different stores, so he is operating under certainty.

Question 8

The first step in the decision-making process involves __________.
A)Generating alternative solutions and evaluating them.
B)Selecting a preferred solution.
C)Implementing the preferred solution.
D)Identifying and defining the problem.
E)Evaluating the results.

Accepted Answer

The first step in the decision-making process involves identifying and defining the problem. Without clearly understanding the problem, it is impossible to generate alternative solutions or evaluate them. Once the problem is identified and defined, the decision-making process can move onto the next steps of generating alternative solutions, selecting a preferred solution, implementing the solution, and evaluating the results.

Question 9

Which of the following features will likely prevent the second step of the decision-making process from being effective?
A)The pros and cons of possible alternative courses of action should be identified
B)Bringing more people into the decision process adds information and perspective to problem solving.
C)Decisions are only as good as the quality of alternatives that are considered.
D)The search for alternatives should be completed quickly.
E)Alternatives should meet ethical standards that are acceptable to the organization's various stakeholders.

Accepted Answer

The second step of the decision-making process involves identifying possible alternative courses of action. If the search for alternatives is completed quickly, it may result in overlooking some potentially better alternatives. This can make the second step ineffective as it may not result in identifying all possible alternatives to make an informed decision.

Question 10

The ideal,but seldom achieved,condition for managerial problem solving is characterized by __________.
A)Low risk,because managers seek little stimulation.
B)High risk,because that is when high profits are possible.
C)Uncertainty,because that offers the greatest chance for creativity.
D)Normality,because that is the condition under which all the business school principles work.
E)Certainty,because the manager simply has to locate the alternative offering the best solution.

Accepted Answer

The ideal condition for managerial problem solving is certainty, where the manager can easily identify and select the alternative offering the best solution. However, this condition is seldom achieved in real-life situations, as most problems are characterized by some level of uncertainty or risk.

Question 11

Stating a problem as the need to "build a better mousetrap" instead of the need to "get rid of mice" is an example of which type of error in identifying and defining a problem?
A)Choosing the wrong problem to deal with.
B)Focusing on symptoms instead of causes.
C)Defining a problem too broadly or too narrowly.
D)Selective perception.
E)Doing the routine rather than the unexpected.

Accepted Answer

Defining the problem as the need to "build a better mousetrap" is too narrow and focuses on a potential solution rather than the actual problem of getting rid of mice.

Question 12

When managers are unable to even assign probabilities to the outcomes attached to various problem-solving alternatives,__________.
A)A state of crisis exists.
B)Uncertainty exists.
C)Managers cannot rely on creativity.
D)No solutions are possible.
E)The planning system must rely on managers' intuition.

Accepted Answer

When managers are unable to assign probabilities to the outcomes, it indicates that uncertainty exists, which means that the outcomes cannot be predicted with certainty. This can make it difficult for managers to make informed decisions and can create a state of unease or discomfort. However, it does not necessarily mean that a state of crisis exists or that no solutions are possible. In fact, managers may have to rely on their creativity and intuition to navigate through the uncertainty and arrive at a viable solution.

Question 13

Anne manages a cupcake shop and has noticed that the cupcakes are disappearing at a faster rate than the sales reflect.She has also noticed that her newest employee,Valerie,has been disappearing for long breaks.Using her  ____________ thinking,Anne follows Valerie to the parking lot,where she sees her take out three cupcakes from a paper bag and eat them on the spot.
A)multidimensional
B)strategic
C)Cognitive
D)intuitive
E)sensation

Accepted Answer

Anne's observation and deduction about Valerie's behavior indicate the use of intuitive thinking, which involves relying on hunches and subconscious mental processes rather than rational analysis.

Question 14

When the severe flooding happened in Calgary,the water levels rose so quickly that decisions had to be made based on limited information.When deciding how to deal with the crisis under such circumstances,the Government of Alberta was operating under what type of decision-making condition?
A)Certainty
B)Risk
C)Uncertainty
D)High certainty
E)Crisis Management

Accepted Answer

The rapid rise of water levels that the government had to deal with in the Calgary flooding indicates that they were operating under conditions of uncertainty, where there was limited information available to make decisions.

Question 15

The customer service manager for The Keg is authorized to distribute dry-cleaning vouchers to customers who complain about spilled drinks on their clothes during their dining experience in the restaurant.This is an example of a __________ decision to an)__________ problem.
A)nonprogrammed;routine
B)nonprogrammed;unstructured
C)nonprogrammed;technical
D)programmed;exclusive
E)programmed;structured

Accepted Answer

This is an example of a programmed decision because it follows a specific, pre-established protocol for a common issue. It's also a structured problem because it is a routine issue that has a standard procedure for resolution.

Question 16

Decision making is a __________ process that begins with __________ and ends with __________.
A)Five-step … identifying and defining the problem … evaluating results.
B)Five-step … identifying and defining the problem … implementing the solution.
C)Four-step … identifying and defining the problem … implementing the solution.
D)Six-step … generating alternative solutions … evaluating the results.
E)Six-step … generating alternative solutions … implementing the solution.

Accepted Answer

Decision making is typically described as a five-step process that starts with identifying and defining the problem and ends with evaluating the results to ensure the chosen solution effectively addresses the initial problem.

Question 17

Comparing the costs of implementing an alternative with its expected benefits is called an)__________.
A)Inventory of alternatives.
B)Cost-benefit analysis.
C)Decision matrix.
D)Payoff table.
E)Chart of probabilities.

Accepted Answer

Cost-benefit analysis involves evaluating the costs and benefits of different alternatives, which helps in making the best decision. It is a useful tool in decision making since it allows weighing the pros and cons of an alternative and choosing the one with the highest net benefit. Therefore, cost-benefit analysis is the best choice for comparing the costs and benefits of implementing an alternative.

Question 18

When decision makers lack complete information on action alternatives and their consequences but have some knowledge of the probabilities associated with the various outcomes,they are operating in an environment of __________.
A)Certainty.
B)Risk.
C)Uncertainty.
D)Subjectivity.
E)Equifinality.

Accepted Answer

When decision makers have some knowledge about the probabilities associated with the outcomes, they are operating in a risky environment. In this situation, decision makers do not have complete information but can estimate the likelihood of different outcomes based on available data.

Question 19

Josephine has just been given the assignment of developing the Sales and Marketing strategy for the company's new product line to be released in December.What type of decision-making will be required of Josephine?
A)structured
B)unstructured
C)technical
D)programmed
E)nonprogrammed

Accepted Answer

Developing a sales and marketing strategy for a new product line involves making unique, nonroutine decisions that require creativity and innovation, making this an example of nonprogrammed decision making. Structured decisions are those with a clear and well-defined process or set of rules, while unstructured decisions lack structure and require creativity and intuition. Technical decisions involve a well-established set of criteria or a best practice for reaching a solution, while sales and marketing strategy development involves exploring new possibilities and requires imagination and originality. Therefore, option E, nonprogrammed decision making, is the most appropriate choice for the type of decision making that Josephine will need to make.

Question 20

The registrar office places university students on academic probation for not maintaining a minimum grade point average.What type of managerial decision is the registrar office taking?
A)Nonprogrammed decision.
B)Crisis decision
C)Decision making
D)Programmed decision
E)Business decision

Accepted Answer

The decision taken by the registrar office is a programmed decision as it is a routine decision taken based on pre-established criteria for maintaining academic standards.

Quiz 13: Information and Decision-Making

The most difficult decision environment for any manager to deal with is __________.

An employee requests that she receive tuition reimbursement for a job-related course that she took at the local community college.This is a good example of a ________________________ problem.

__________ is the decision making stage at which people assemble the facts and information that will be helpful for problem solving.

A key aspect of __________ involves clarifying goals by determining exactly what a decision should accomplish.

The __________ involves a set of activities and events that begins with identification of a problem,includes making a decision,and ends with the evaluation of results.

Eric needed a new refrigerator.Before making a purchase,he did his research and found out what the pricing was at three different stores for the fridge he wanted to buy.Eric is operating under what type of decision-making condition?

The first step in the decision-making process involves __________.

Which of the following features will likely prevent the second step of the decision-making process from being effective?

The ideal,but seldom achieved,condition for managerial problem solving is characterized by __________.

Stating a problem as the need to "build a better mousetrap" instead of the need to "get rid of mice" is an example of which type of error in identifying and defining a problem?

When managers are unable to even assign probabilities to the outcomes attached to various problem-solving alternatives,__________.

When the severe flooding happened in Calgary,the water levels rose so quickly that decisions had to be made based on limited information.When deciding how to deal with the crisis under such circumstances,the Government of Alberta was operating under what type of decision-making condition?

The customer service manager for The Keg is authorized to distribute dry-cleaning vouchers to customers who complain about spilled drinks on their clothes during their dining experience in the restaurant.This is an example of a decision to an) problem.

Decision making is a process that begins with and ends with __.

Comparing the costs of implementing an alternative with its expected benefits is called an) __________.

When decision makers lack complete information on action alternatives and their consequences but have some knowledge of the probabilities associated with the various outcomes,they are operating in an environment of __________.

Josephine has just been given the assignment of developing the Sales and Marketing strategy for the company's new product line to be released in December.What type of decision-making will be required of Josephine?

The registrar office places university students on academic probation for not maintaining a minimum grade point average.What type of managerial decision is the registrar office taking?