MGT 3150 Exam 1 quiz questions

True or False. The main disadvantage of system 2 thinking is its high resource consumption.

True

True or False. This book takes a descriptive, rather than a prescriptive approach, to studying decision making, meaning that it provides ways to understand actual human decision making, but does not provide tools for improving one's decision processes.

True

An optimal search for alternatives should last: a. As long as the cost of the search does not outweigh the value of the added information. b. As long as needed to find the best solution. c. As long as needed to find the first good enough solution. d. As long as the cost of the search is within the appropriate limits set by the decision maker.

a. As long as the cost of the search does not outweigh the value of the added information.

Rating alternatives on each of the decision criteria is considered the most difficult stage of the decision-making process, because: a. It requires us to forecast how each alternative solution will achieve each of our decision criteria. b. It assumes we have precisely defined our priorities. c. It requires us to compare all of the alternatives simultaneously. d. It is likely to fail if our problem is not defined correctly, and this failure will not be detected.

a. It requires us to forecast how each alternative solution will achieve each of our decision criteria.

For the question below, indicate which heuristic it describes: A common wisdom in politics is that the more an argument is repeated, the more it will be considered by the public as reliable and true. a. The availability heuristic. b. The representativeness heuristic. c. The confirmation heuristic. d. The affect heuristic.

a. The availability heuristic.

For the question below, indicate which heuristic it describes: Inner city crime in the U.S. gets considerable media coverage, such that every homicide is reported in the news. In contrast, a story of a person who died from a heart attack rarely makes the news. This leads people to overestimate the frequency of deaths due to homicides relative to those due to heart failure. a. The availability heuristic. b. The representativeness heuristic. c. The confirmation heuristic. d. The affect heuristic.

a. The availability heuristic.

For the question below, indicate which heuristic it describes: After reading about the positive effect chocolate has on student performance, a teacher gives each student in a class a chocolate bar before taking an exam. 15 out of 22 students in that class get an A on the exam. The teacher therefore concludes that chocolate enhances performance. a. The confirmation heuristic. b. The representativeness heuristic. c. The availability heuristic. d. The affect heuristic.

a. The confirmation heuristic.

For the question below, indicate which heuristic it describes: John is over seven feet tall. When asked whether John is a professional basketball player or a software programmer, many people predict the former, even though there are many more software programmers, even very tall ones, than professional basketball players. a. The representativeness heuristic. b. The availability heuristic. c. The confirmation heuristic. d. The affect heuristic.

a. The representativeness heuristic.

Which of the following is a typical characteristic of heuristics? a. They provide us with a simple way of dealing with complex problems. b. They have the best likelihood of reaching an optimal solution to a problem. c. They are time and resource consuming. d. They are used mainly by irrational decision makers.

a. They provide us with a simple way of dealing with complex problems.

In the interplay between system 1 and system 2 thinking, the key goal for managers is: a. To identify when they should move from system 1 to system 2 thinking. b. To improve their use of system 1 thinking. c. To attempt to use system 2 thinking as much as possible. d. To apply both systems in making decisions in order to perform a more thorough and complex search for alternatives.

a. To identify when they should move from system 1 to system 2 thinking.