Management Test 2

Hindsight Bias

A new company offering office supplies opened up and Sai decided to try the new vendor, not knowing if their service would be any good. After a few months of good service, Sai looked back and felt he knew head picked a winner all along.

Overconfidence Bias

After a couple of weeks in his class in corporate finance, Milo decided he should be able to do just as good of a job at making investment decisions at his broker

Confirmation Bias

After finally deciding on what new car to buy, Declan told his friends and colleagues about it, but disregarded the things said by friends who didn't like the model he chose

Big Data Analytics

Data hunters review large amounts of data and discover what people may be interested in. This is known as

Directive

Ellis has a low tolerance for ambiguity. He is efficient, logical, practical, and systematic in his approach to solving problems

Conceptual

Grace has a high tolerance for ambiguity and tends to focus on the social aspects of a situation. She is willing to take risks and is good at finding creative solutions to problems

Predictive Modeling

If an organization uses customer data to predict future behavior and anticipate the consequences of change, it would be engaging in which of the following?

Escalation of Commitment Bias

Much to the dismay of her friends and colleagues, Amara decided to change cellphone carriers. She wasn't happy with the new service but continued to use them rather than switch back to the carrier all of her friends wanted her to use.

Anchoring and Adjustment Bias

Nishka was looking at buying a new car. After seeing the sticker prices on really expensive models, the lower cost models looked even more attractive!

Evidence-Based Decision Making

Paige, a business executive, uses data to inform her on the best advertising decisions to make. Paige most likely engages in

Behavioral

Pei is very people-oriented. When making decisions, he enjoys social interactions in which opinions are openly exchanged. he is receptive to suggestions and tends to avoid conflict.

Rational Decision Making

Scott and his partner, Greg, have decided to update their computer network

System 2

The use of predictive advertising would fall under which system of decision making

Representativeness Bias

Trinity tried a new sales technique with a new client. It worked! She now assumes that this technique will also work with all of her other clients

Analytical

Ursula has a high tolerance for ambiguity but focuses on technical aspects more than social aspects. She is a careful decision maker, taking longer to make decisions but acting well in new situations

Availability Bias

When she traveled to Australia on business recently, Cori assumed the weather would be the same as her home in New York. She soon found out it was winter in Australia.

Framing Bias

When she was looking at leasing a new car, Rosa noticed that the car salesman focused more on the monthly payment than on the overall cost of the lease versus buying it outright

Sunk-Cost Bias

Zion took his older car to a mechanic and had his transmission rebuilt (a somewhat costly repair). The next wee, his brakes quit working. Instead of trading the car in, he put in new brakes as well, since he had already fixed the transmission.