Question 1

Alejandro is assigned the task of marketing a new experimental drug to consumers in a developing country. He is not aware of the potential side-effects of the drug. Moreover, Alejandro does not know if there is a demand for this drug in that developing country. He is unable to even assign probabilities to the likely outcomes of his marketing strategies to sell this drug. The decision-making environment of Alejandro can be referred to as a(n) ___. A) uncertain environment B) risk environment C) certain environment D) threat environment E) unanticipated environment

Accepted Answer

Alejandro is unable to assign probabilities to the likely outcomes of his marketing strategies and he is not aware of the potential side-effects of the drug. This shows that the decision-making environment of Alejandro is uncertain as he lacks important information about the outcomes of his decisions.

Question 2

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

Problem identification and definition is the stage where the goals are clarified by determining exactly what the decision should accomplish. This provides a clear direction for the other stages of decision making such as generation of solutions, evaluation of solutions, implementation of solutions, and choosing a preferred solution.

Question 3

Adara does not seem to be as productive as she usually is. Arleen, her manager, is concerned about her performance. Arleen wants to talk to Adara and solve the problem. Which of the following is the first step Arleen should take in the decision-making process? A) Generate and evaluate alternative solutions to improve her performance. B) Choose a preferred course of action for performance improvement. C) Identify and define the problem that is causing the productivity issues. D) Talk to Adara's family. E) Evaluate solutions before consulting Adara.

Accepted Answer

In order for Arleen to solve the issue of Adara's decreased productivity, the first step should be to identify and define the problem. This will allow Arleen to have a clear understanding of what the issue is and then move on to generating and evaluating possible solutions. Option A,B and E are potential subsequent steps in the decision-making process, but not the first one. Option D is not a relevant step in this situation.

Question 4

Which of the following is a common mistake that can occur in the first step of decision making?
A) choosing the first alternative that gives a satisfactory solution
B) abandoning the search for alternatives too quickly
C) lack-of-participation error
D) focusing on symptoms instead of causes
E) not measuring the performance results

Accepted Answer

In the first step of decision making, focusing on symptoms instead of identifying the root causes is a common mistake, as it can lead to ineffective solutions.

Question 5

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

This is an example of defining a problem too narrowly. By focusing on building a better mousetrap, the problem is narrowly defined around the solution (a mousetrap) rather than addressing the broader issue of getting rid of mice, which could involve a variety of solutions.

Question 6

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 a(n) ___ 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 7

When the severe flooding happened in Calgary, Alberta, 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 limited information available and the quick rise in water levels indicate that the Government of Alberta was operating under conditions of uncertainty, meaning there was a lack of information and the outcome was unpredictable.

Question 8

Priya, a manager at an IT firm, has to make a decision on the amount of money to be allocated for purchasing five new laptops for her team members. She is aware of the current price of the laptops and has the information about the amount of money spent on purchasing new laptops the previous year. This type of environment that is ideal for decision making is known as a(n) ___.
A) structured environment
B) risk environment
C) certain environment
D) threat environment
E) unanticipated environment

Accepted Answer

In a certain environment, decision-makers have enough information to know the outcome of every alternative in advance. Since Priya knows the current price of the laptops and the amount spent the previous year, she is in a position to make an informed decision with predictable outcomes, characteristic of a certain environment.

Question 9

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 is operating under a condition of certainty because he has gathered all necessary information (pricing from three different stores) about the fridge he wants to buy, indicating he has full knowledge of the situation.

Question 10

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 a(n) ___ 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 11

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 registrar office is taking a programmed decision, which is a decision that is made in response to a routine problem or situation that has occurred before, such as placing students on academic probation for not maintaining a minimum GPA.

Question 12

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 simply has to locate the alternative offering the best solution. This allows for a more straightforward decision-making process with a clear understanding of available options and their outcomes.

Question 13

Nicole is trying to solve a problem that has resulted in defective products. She has understood that the problem is due to a technical failure and has realized that it has to be corrected immediately to avoid further loss. The next step in Nicole's decision-making process after collecting all the details regarding the problem is to
A) choose a preferred course of action.
B) evaluate the implemented solution.
C) implement the decision.
D) define the problem.
E) generate and evaluate alternative solutions.

Accepted Answer

After collecting details about the problem, Nicole needs to generate possible solutions and evaluate them before choosing a preferred course of action. Therefore, the best choice is to generate and evaluate alternative solutions (Option E). Once this step is completed, she can choose the most suitable solution and implement it (Option C). The implementation can then be evaluated (Option B) to determine its effectiveness in solving the problem. Defining the problem (Option D) should have been completed before gathering details about it.

Question 14

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 is a unique and non-recurring task. Josephine will have to use nonprogrammed decision-making to analyze and evaluate various alternatives, consider potential risks and uncertainties, and develop a new plan that aligns with the company's goals and objectives. This type of decision-making doesn't have a standard procedure or solution as it involves unforeseeable and unpredictable factors.

Question 15

Nikolai and his team have been asked to make a decision on implementing a new technology that might help to decrease the production time at their firm. They do not have any factual information about the performance of the new technology, and it is difficult to predict the outcome of their decision. They are forced to rely heavily on their intuition to make the decision. This represents a(n) ___ environment. A) anticipated B) secure C) certain D) precise E) uncertain

Accepted Answer

An uncertain environment is characterized by a lack of factual information and the inability to predict outcomes with confidence. In this scenario, Nikolai and his team do not have any factual information about the performance of the new technology and are relying heavily on their intuition to make the decision, indicating an uncertain environment.

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

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 given activities and events describe the decision-making process. The control process involves monitoring and adjusting ongoing activities, the organizing process involves arranging resources to achieve goals, the leading process involves directing and motivating individuals to achieve goals, and the negotiation process involves reaching a mutually acceptable agreement between parties.

Question 18

Which of the following is the first step in a decision-making process?
A) generating alternative solutions
B) evaluating results
C) evaluating alternative solutions
D) identifying and defining a problem
E) choosing a preferred course of action

Accepted Answer

Identifying and defining a problem is the first step in the decision-making process. Without clearly identifying the problem, it's impossible to generate alternative solutions or evaluate them effectively.

Question 19

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

The answer of An employee requests that she receive tuition...

Question 20

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, it means that there is uncertainty surrounding the outcomes of the problem-solving alternatives. This can create a difficult decision-making process, but it does not necessarily mean that a state of crisis exists or that no solutions are possible. Managers may turn to creativity or intuition as methods for making decisions in the face of uncertainty.

Quiz 7: Information and Decision Making

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

Adara does not seem to be as productive as she usually is. Arleen, her manager, is concerned about her performance. Arleen wants to talk to Adara and solve the problem. Which of the following is the first step Arleen should take in the decision-making process?

Which of the following is a common mistake that can occur in the first step of decision making?

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?

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 a(n) _ problem.

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 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?

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

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?

Decision making is a _ process that begins with _ and ends with ___.

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.

Which of the following is the first step in a decision-making process?

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.

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