Question 1

__________ is the decision-making stage at which problem-solving actions are initiated.
A)Identification and problem definition
B)Solution generation and evaluation
C)Solution selection and "ethics double check"
D)Implementation
E)Evaluation

Accepted Answer

Implementation is the stage at which problem-solving actions are initiated. This is when the solutions generated from the previous stage (solution generation and evaluation) are put into action.

Question 2

Which statement about heuristics is correct?
A)The availability heuristic occurs when people use information from memory as a basis for assessing a current situation or event.
B)The representativeness heuristic occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences.
C)The anchoring and adjustment heuristic involves making decisions based on alterations to a previously existing value or starting point.
D)All of the above.
E)None of the above.

Accepted Answer

All three statements are correct descriptions of different types of heuristics. The availability heuristic involves using information from memory to assess a situation. The representativeness heuristic involves assessing the likelihood of an event based on how similar it is to stereotyped occurrences. Finally, the anchoring and adjustment heuristic involves making decisions based on starting points or previously existing values.

Question 3

Joseph evaluated seven different computer models and decided that the Dell model was the best choice for his company's purposes.After obtaining permission,he ordered the computers from a reputable company.Which stage of the decision-making process is Joseph carrying out in making the order?
A)Generate and evaluate alternative courses of action
B)Identify and define the problem
C)Evaluate results
D)Implement the decision
E)Decide on a preferred course of action

Accepted Answer

Joseph has already gone through the stages of identifying the problem, generating and evaluating alternative courses of action, deciding on a preferred course of action, and evaluating results. By ordering the computers, he is implementing his decision.

Question 4

The __________ is particularly useful in describing how people make decisions under conditions of risk and uncertainty.
A)Classical decision model
B)Executive decision model
C)Behavioural decision model
D)Descriptive decision model
E)Political decision model

Accepted Answer

The behavioural decision model focuses on how people actually make decisions, including the influence of emotions and biases, and is particularly useful in describing decision-making under conditions of risk and uncertainty. The other models listed may be useful in certain decision-making situations, but do not specifically address risk and uncertainty.

Question 5

When people face complex environments and have limited information,they often use simplifying strategies for decision making.These simplifying strategies are known as __________.
A)Uncertainty reduction.
B)Heuristics.
C)Optimizing.
D)Rationalization.
E)Work simplification.

Accepted Answer

The simplifying strategies used by people in complex environments with limited information are known as heuristics.

Question 6

Typical criteria for evaluating alternative solutions include all of the following EXCEPT:
A)Benefits and costs.
B)Timeliness.
C)Acceptability.
D)Ease of implementation.
E)Ethical soundness.

Accepted Answer

Ease of implementation is not typically a standard criterion for evaluating alternative solutions, as it focuses more on the practicality of execution rather than the overall effectiveness or impact of the solution.

Question 7

Which of the following does NOT accurately describe the evaluation of results in the decision-making process?
A)The decision-making process is not complete until results are evaluated
B)The process must be renewed when results are not achieved.
C)Only negative consequences of the chosen course of action need to be examined.
D)Evaluation is made easier if the solution involves clear objectives with measurable targets and timetables.
E)A modified or new solution may need to be generated if the original solution appears to be inadequate.

Accepted Answer

Only examining negative consequences of a chosen course of action is not a comprehensive evaluation of results. Positive outcomes also need to be analyzed in order to determine the success of the decision-making process.

Question 8

Salem is an operations manager whose budget of $555,000 was approved to buy four new machines in order to increase production by 15%.After seeing what the suppliers had to offer,he realized that the model which would best suit his company's needs was very expensive and he could only purchase three machines rather than four.He requested a budget increase and was denied.Salem decided that the three machines will serve the purpose.This is an example of ________.
A)evaluating results
B)bounded rationality
C)rational decision-making
D)classical decision model
E)cost benefit analysis

Accepted Answer

Salem's decision-making process demonstrates bounded rationality, as he was limited by his budget and ultimately had to settle for a solution that was less optimal than his original plan. This is a common occurrence in real-world decision-making, where managers are often faced with constraints and have to make trade-offs between competing priorities.

Question 9

The final stage of the decision-making process is __________.
A)Identifying and defining problems.
B)Generating and evaluating solutions.
C)Selection a course of action.
D)Implementing the solution.
E)Evaluating results.

Accepted Answer

The final stage of the decision-making process is evaluating the results to determine if the solution was effective and if any adjustments need to be made. Therefore, option E is the best choice.

Question 10

Joseph determines that he needs to purchase new computers for his department and he make a list of seven different computer models for consideration.Which stage of the decision-making process is this?
A)Generate and evaluate alternative courses of action
B)Identify and define the problem
C)Evaluate results
D)Implement the decision
E)Decide on a preferred course of action

Accepted Answer

Joseph is in the stage where he is generating and evaluating different options (computer models) to address his need, which aligns with generating and evaluating alternative courses of action.

Question 11

The __________ occurs when people use information "readily available" from memory as a basis for assessing a current situation or event.
A)Representativeness heuristic.
B)Availability heuristic.
C)Escalation heuristic.
D)Satisficing heuristic.
E)Anchoring and adjustment heuristic.

Accepted Answer

The availability heuristic is when people base their judgments on the readily available information from their memory. This can be problematic because the information that is easily accessible may not be representative of the larger picture or may be biased.

Question 12

The __________ describes decision making with complete information,where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences.
A)Classical decision model.
B)Administrative decision model.
C)Behavioural decision model.
D)Bounded rationality decision model.
E)Political decision model.

Accepted Answer

The classical decision model assumes that the decision maker has complete information and can clearly define the problem and alternatives, and understand the consequences of each alternative. This model also assumes that the decision maker is rational and makes decisions based on a cost-benefit analysis of the available options.

Question 13

The third step of the decision-making process involves __________.
A)Generating alternative solutions and evaluating them.
B)Selecting a preferred course of action
C)Implementing the solution.
D)Gathering information,processing information,and deliberating.
E)Evaluating the results.

Accepted Answer

The answer of The third step of the decision-making process...

Question 14

The __________ describes decision making where people are assumed to act only in terms of what they perceive about a given situation.
A)Executive decision model.
B)Personal decision model.
C)Biased decision model.
D)Behavioural decision model.
E)Descriptive decision model.

Accepted Answer

The behavioural decision model assumes that people make decisions based on their past experiences, biases, habits, and emotions, rather than using rational analysis or optimal decision-making techniques. Therefore, they act only in terms of what they perceive about a given situation.

Question 15

The manager at a shoe retail store is trying to estimate how much stock to order for the current spring season based on last spring's outcomes.The manager is operating under what kind of decision-making condition?
A)reliability
B)risk
C)uncertainty
D)certainty
E)crisis

Accepted Answer

The answer of The manager at a shoe retail store...

Question 16

A manager who chooses the alternative giving the absolute best solution to a problem is making an)__________.
A)Wise decision
B)Optimizing decision
C)Managerial decision
D)Limiting decision
E)Systematic decision.

Accepted Answer

A manager who chooses the alternative giving the absolute best solution to a problem is making an optimizing decision, as they are selecting the option that maximizes the benefits or minimizes the negative consequences. Wise decision-making also factors in other considerations such as ethical implications and potential long-term effects, while managerial decision-making may prioritize practicality and the organization's goals. Limiting decisions involve settling for a suboptimal solution due to constraints, while systematic decisions involve following a predetermined process for decision-making.

Question 17

When a manager chooses the first satisfactory alternative that comes to his or her attention during the decision-making process,______________ occurs.
A)Rationalization.
B)Intuition.
C)Satisficing.
D)Optimization.
E)Utilitarianism.

Accepted Answer

Satisficing occurs when a manager chooses the first satisfactory alternative that comes to his or her attention during the decision-making process, even if it may not be the best possible option. This is done in order to save time and effort during the decision-making process.

Question 18

After purchasing new computers for his department,Joseph is now comparing the performance of the new computers to the computers they replaced.Which stage of the decision-making process is he carrying out?
A)Generate and evaluate alternative courses of action
B)Identify and define the problem
C)Evaluate results
D)Implement the decision
E)Decide on a preferred course of action

Accepted Answer

Joseph is evaluating the results of his decision to purchase new computers, which falls under the stage of evaluating the decision.

Question 19

__________ indicates that decisions are rational only within the boundaries defined by the available information.
A)Bounded rationality.
B)Available rationality.
C)Limited decision making.
D)Classical decision making.
E)Optimal rationality.

Accepted Answer

Bounded rationality is the concept that decisions are rational within the limits or boundaries of the available information. It recognizes that individuals have limited cognitive abilities, time, and resources to make decisions, which often leads to a satisfactory rather than optimal solution. The other options are not correct because they do not accurately describe the concept of rational decision making.

Question 20

The failure to adequately involve the people whose support is necessary to ensure a plan's implementation is a major reason for difficulties in the __________ stage of decision making.
A)Identification and problem definition.
B)Solution generation and evaluation.
C)Solution selection and "ethics double check."
D)Implementation.
E)Evaluation.

Accepted Answer

The implementation stage of decision making is where the actual plan is put into action. If the people who are necessary to ensure its success were not adequately involved in the decision-making process, they may resist or refuse to comply with the plan, resulting in difficulties during implementation.

Quiz 13: Information and Decision-Making

__________ is the decision-making stage at which problem-solving actions are initiated.

Which statement about heuristics is correct?

Joseph evaluated seven different computer models and decided that the Dell model was the best choice for his company's purposes.After obtaining permission,he ordered the computers from a reputable company.Which stage of the decision-making process is Joseph carrying out in making the order?

The __________ is particularly useful in describing how people make decisions under conditions of risk and uncertainty.

When people face complex environments and have limited information,they often use simplifying strategies for decision making.These simplifying strategies are known as __________.

Typical criteria for evaluating alternative solutions include all of the following EXCEPT:

Which of the following does NOT accurately describe the evaluation of results in the decision-making process?

The final stage of the decision-making process is __________.

Joseph determines that he needs to purchase new computers for his department and he make a list of seven different computer models for consideration.Which stage of the decision-making process is this?

The __________ occurs when people use information "readily available" from memory as a basis for assessing a current situation or event.

The __________ describes decision making with complete information,where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences.

The third step of the decision-making process involves __________.

The __________ describes decision making where people are assumed to act only in terms of what they perceive about a given situation.

The manager at a shoe retail store is trying to estimate how much stock to order for the current spring season based on last spring's outcomes.The manager is operating under what kind of decision-making condition?

A manager who chooses the alternative giving the absolute best solution to a problem is making an) __________.

When a manager chooses the first satisfactory alternative that comes to his or her attention during the decision-making process,______________ occurs.

After purchasing new computers for his department,Joseph is now comparing the performance of the new computers to the computers they replaced.Which stage of the decision-making process is he carrying out?

__________ indicates that decisions are rational only within the boundaries defined by the available information.

The failure to adequately involve the people whose support is necessary to ensure a plan's implementation is a major reason for difficulties in the __________ stage of decision making.