Man chapter 8
A situation in which the decision maker has neither certainty nor reasonable probability estimates available is known as __________. A. uncertainty B. heuristics C. bias D. intuition
A. uncertainty
__________ is a group decision-making process in which negative feedback on any suggested alternative by any group member is forbidden until all members have presented alternatives that they perceive as valuable. A. Brainstorming B. Nominal group technique C. Decision tree D. Probability theory
A. Brainstorming
Which of the following is used to evaluate decisions that are complicated or involve a series of steps? A. Expected value B. A decision tree C. Risk calculations D. Groupthink E. Probability theory
B. A decision tree
What is the first step in the rational decision-making process model? A. Implementing alternatives B. Gathering feedback about an implemented alternative C. Identifying an existing problem D. Listing possible alternatives E. Selecting the most beneficial alternatives
C. Identifying an existing problem
Overconfidence is __________. A. characteristic of individuals who tend to more strongly prefer avoiding losses rather than acquiring gains B. the tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs C. the tendency to believe certain outcomes because others believe the same D. the tendency to believe that our forecasts are better than they truly are when attempting to predict future events
D. the tendency to believe that our forecasts are better than they truly are when attempting to predict future events
Biological factors are a limitation on the number of problem-solving alternatives available. An example is __________. A. when the level of technology may be inadequate for certain alternatives B. when the physical facilities of the organization may be inappropriate for certain alternatives C. when a manager's superior may have told the manager that a certain alternative is not feasible D. when human factors within the organization may be inappropriate for implementing certain alternatives
D. when human factors within the organization may be inappropriate for implementing certain alternatives
Which of the following is NOT a major limitation on the number of problem-solving alternatives available? A. Brainstorming factors B. Technological factors C. Authority factors D. Physical factors E. Economic factors
A. Brainstorming factors
To meet customer demand for pasta that contains protein, a manufacturer needs to determine the net expected gain between making changes to its existing product and developing a new product. What should management do first? A. Develop a decision tree. B. Apply the probability theory. C. Vote using a secret ballot. D. Use the Delphi technique.
A. Develop a decision tree.
Jackie is looking to make a decision on which new product her company should put to market next from a group of alternatives. She begins by removing the least desirable alternatives from the set. What technique for considering alternatives is Jackie using? A. Exclusion B. Satisfice C. Brainstorming D. Inclusion E. Intuition
A. Exclusion
Which term refers to people tending to seek out information that supports their preconceived beliefs and ignoring any information that undermines those beliefs? A. Overconfidence B. Confirmation bias C. Unrealistic optimism D. Bandwagon effect E. Loss aversion
B. Confirmation bias
Which is an advantage of group decision making? A. Cost to the organization B. Implementation support C. Time to reach a decision D. Quality due to groupthink
B. Implementation support
Which of the following refers to the steps a decision maker takes to arrive at a decision? A. Bounded rationality process B. Rational decision-making process C. Brainstorming D. Market-oriented decision making E. Nominal group technique
B. Rational decision-making process
Which of the following would be considered a nonprogrammed type of decision? A. Which delivery route would be most cost effective B. Whether the organization should expand its market to Africa C. How products should be arranged on a shelf D. Which supplier should be used for a commonly used item E. Which products should be placed in a store display
B. Whether the organization should expand its market to Africa
Consensus is __________. A. simple rules of thumb B. an agreement on a decision by all the individuals involved in making that decision C. a situation in which the decision maker has neither certainty nor reasonable probability estimates available D. the proportion of the total management system that a decision will affect
B. an agreement on a decision by all the individuals involved in making that decision
A(n) __________ is considered feasible for solving an existing problem and for implementation. A. goal to be served B. relevant alternative C. choice of alternatives D. ordering of alternatives
B. relevant alternative
The rational decision-making process model is based on three primary assumptions. Which of the following is one of those assumptions? A. There is limited knowledge of the potential number of total alternatives. B. All considered choices in the process model will offer a degree of success. C. Decision makers will work to maximize satisfaction or return. D. Decision makers will use experience instead of a priority system in ranking alternatives. E. Decision makers will seek the alternative that best enhances their career.
C. Decision makers will work to maximize satisfaction or return.
Which of the following is a key advantage of group decision making? A. Groups take their time looking at each alternative in detail, saving the organization time and money. B. Friendly relationships within the group increase support for alternatives. C. Group members perceive the decision as their own and are more likely to take responsibility for it. D. Groupthink is likely to improve decision quality. Your answer is not correct. E. Group members attend each meeting and discuss all viewpoints equally.
C. Group members perceive the decision as their own and are more likely to take responsibility for it.
__________ is the proportion of the total management system that a decision will affect. A. Consensus B. Uncertainty C. The scope of the decision D. Heuristics
C. The scope of the decision
Unrealistic optimism is __________. A. the tendency to believe certain outcomes because others believe the same B. the tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs C. an individual's tendency to believe that they are less susceptible to risky events such as earthquakes D. characteristic of individuals who tend to more strongly prefer avoiding losses rather than acquiring gains
C. an individual's tendency to believe that they are less susceptible to risky events such as earthquakes
Decision makers who are willing to steal ideas as necessary to make good decisions have a(n) ________ orientation to the decision-making process. A. hoarding B. consensus C. exploitative D. marketing E. receptive
C. exploitative
Kasey is attempting to make a decision and she wants to avoid the paradox of choice. She has a list of alternatives, but it is very long. So, she makes a smaller list of the most desirable alternatives from which to choose. She is usinga(n) _____ strategy. A. heuristics B. intuition C. inclusion D. consensus E. exclusion
C. inclusion
Audrey tends to believe that her forecasts are better than they really are. This illustrates a decision-making bias known as ________. A. unrealistic optimism B. the bandwagon effect C. overconfidence D. confirmation bias E. loss aversion
C. overconfidence
__________ is the tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs. A. The bandwagon effect D. Loss aversion C. Overconfidence D. Confirmation bias
D. Confirmation bias
How is the Delphi technique different than the nominal group technique or the brainstorming technique? A. A consensus must be reached before the solution can be implemented. B. Individual group members are asked to generate solutions to problems. C. The discussion of alternatives is unstructured and spontaneous. D. Groups do not meet face to face. E. A secret ballot is used to determine support for a solution.
D. Groups do not meet face to face.
Which term refers to situations in which statistical probabilities can be assigned to possible results? A. Objective standards B. Probability theory C. Unknown probabilities D. Risk E. Uncertainty
D. Risk
The group decision-making process in which negative feedback is banned until all members have presented an alternative is known as ______. A. probability theory B. the nominal group technique C. the decision-tree technique D. brainstorming E. the Delphi technique
D. brainstorming
Loss aversion is __________. A. the tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs B. the tendency to believe certain outcomes because others believe the same C. the tendency to believe that our forecasts are better than they truly are when attempting to predict future events D. characteristic of individuals who tend to more strongly prefer avoiding losses rather than acquiring gains
D. characteristic of individuals who tend to more strongly prefer avoiding losses rather than acquiring gains
The _____ orientation is characterized by the desire to preserve the status quo as much as possible. A. consensus B. marketing C. receptive D. hoarding E. exploitative
D. hoarding
Decision makers must put the decision into action by conveying it to those affected in the __________ step of the decision-making process. A. gather feedback B. select an alternative C. list possible alternatives for solving the problem D. implement the alternative
D. implement the alternative
The basic element of decision making that focuses on deciding the best course of action among potential solutions is called ________. A. the order of alternatives B. gaining support of decision makers C. developing goals to be served Your answer is not correct. D. the choice of alternatives E. developing relevant alternatives
D. the choice of alternatives
Which of the following is unique to the nominal group technique compared to the other discussed group decisionprocesses? A. Group members do not meet face to face. B. Members generate as many viable decision alternatives as possible. C. A problem is identified in the first step of the process. D. Group members offer solutions by providing anonymous responses to questionnaires. E. Each member writes down ideas on the issue being discussed.
E. Each member writes down ideas on the issue being discussed.
Which of the following is a key disadvantage of group decision making? A. A group will rely on the Delphi technique too much. B. Group members want to perceive a decision as their own and are likely to prematurely give in to failure when the decision is not going well. C. Groups do not offer as much support to decisions as when decisions are made by individuals. D. Groups can have diverse backgrounds and may understand alternatives differently. E. Group decisions can be of lower quality because of groupthink.
E. Group decisions can be of lower quality because of groupthink.
Billy has an inborn ability to synthesize information quickly and effectively. His friends say he has a strong sense of_____. A. rationalization B. optimizing C. satisficing D. bounded rationality E. intuition
E. intuition
Which of the following terms describes the negative effect of having too many alternatives? A. Paradox of choice B. Inclusion C. Authority factors D. Exclusion E. Abilene paradox
A. Paradox of choice
__________ is a decision-making tool used in risk situations. A. Probability theory B. Brainstorming C. Nominal group technique D. A decision tree
A. Probability theory
Which of the following refers to situations where the likelihood of an outcome is not known in advance? A. Uncertainty B. Heuristics C. Risk D. Loss aversion E. Unrealistic optimism
A. Uncertainty
Authority factors are a limitation on the number of problem-solving alternatives available. An example is when __________. A. a manager's superior may have told the manager that a certain alternative is not feasible B. when the level of technology may be inadequate for certain alternatives C. when the physical facilities of the organization may be inappropriate for certain alternatives D.when human factors within the organization may be inappropriate for implementing certain alternatives
A. a manager's superior may have told the manager that a certain alternative is not feasible
A programmed decision is __________. A. a repetitive decision that can be handled by a routine approach B. completed in one shot and ill structured C. not unique and nonrecurring, and does not involve custom made solutions D. unique and nonrecurring, and involves custom-made solutions
A. a repetitive decision that can be handled by a routine approach
The __________ step in the decision-making process is identifying a problem. A. first B. second C. third D. fifth
A. first
When making decisions using the nominal group technique, group members _________. A. offer potential solutions without fear of recrimination B. are constrained by resources like time and knowledge C. make poor decisions because there are too many alternatives D. evaluate decisions by creating decision trees
A. offer potential solutions without fear of recrimination
Situations in which statistical probabilities can be attributed to alternative potential outcomes are known as __________. A. risk B. ambiguity C. certainty D. uncertainty
A. risk
The proportion of the total management system that will be affected by a decision is known as ________. A. the scope of the decision B. a nonprogrammed decision C. a cause for consensus D. the levels of management influence E. the decision-making process
A. the scope of the decision
Physical factors are a limitation on the number of problem-solving alternatives available. An example of a physical factor is __________. A. when the physical facilities of an organization may be inappropriate for certain alternatives B. when the level of technology may be inadequate for certain alternatives C. when a manager's superior may have told the manager that a certain alternative is not feasible D. when human factors within the organization may be inappropriate for implementing certain alternatives
A. when the physical facilities of an organization may be inappropriate for certain alternatives
The bandwagon effect is __________. A. the tendency to believe that our forecasts are better than they truly are when attempting to predict future events B. the tendency to believe certain outcomes because others believe the same C. characteristic of individuals who tend to more strongly prefer avoiding losses rather than acquiring gain D. the tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs
B. the tendency to believe certain outcomes because others believe the same
Heuristics refers to __________. A. an agreement on a decision by all the individuals involved in making that decision B. the proportion of the total management system that a decision will affect C. simple rules of thumb D. a situation in which the decision maker has neither certainty nor reasonable probability estimates available
C. simple rules of thumb
Wallace is a decision maker at an organization and is unsure of what will be the outcome of an alternative in a simple decision situation. What decision-making tool would be most helpful for Wallace considering his predicament? A. Brainstorming B. Groupthink C. A decision tree D. Risk calculations E. Probability theory
E. Probability theory
The departure from rational theory that can result in less than optimal decisions is known as ________. A. bounded rationality B. intuition C. heuristics D. satisfice E. bias
E. satisfice
