Management Chapter #4

Bounded rationality is assumed in the _____ model of decision-making. a. administrative b. irrational c. groupthink d. classical e. rational

a. administrative

Decisions made by top managers involving strategy, such as mergers and acquisitions, are examples of _____ decisions. a. nonprogrammed b. programmed c. structured d. operational e. frequent

a. nonprogrammed

When the low-indicator light turns red on the frozen drink machine, Kareem follows an established set of procedures to refill and reset the machine. In doing so, he's making a(n) _____ decision. a. programmed b. unstructured c. irrational d. intuitive e. strategic

a. programmed.

The first step in rational decision-making is _____. a. recognizing and defining the decision situation b. selecting the best alternative c. identifying alternatives d. implementing an alternative e. evaluating alternatives

a. recognizing and defining the decision situation.

Amina, the senior marketing manager, has estimated costs and has forecasted sales for the company's new product. However, there are many unknowns in both the new product development and market conditions that she cannot predict. Amin is making new product launch decisions under a condition of _____. a. uncertainty b. security c. risk d. certainty e. ambiguity

a. uncertainty

The classical decision model is a prescriptive approach, meaning that it _____. a. Evaluating decision effectiveness b. Implementing an alternative c. Selecting the alternative d. Defining the situation e. Evaluating the possible alternatives

b. Implementing an alternative.

What must a decision maker understand in order to make the most effective decision possible? a. Whether there is a problem or an opportunity b. The situation driving the decision c. Whether the decision is programmed or nonprogrammed d. Who is affected by the decision e. Feasible alternatives

b. The situation driving the decision.

Which of the following statements is true in the context of decision-making under a condition of uncertainty? a. A decision maker puts in the least effort and uses a pre-determined structure for decision-making. b. A decision maker clearly knows all the risks associated with alternatives to a problem. c. A decision maker greatly relies on intuition, judgment, and experience. d. A decision maker is able to estimate the payoffs and risks associated with alternatives. e. A decision maker identifies only two alternatives to the decision situation.

c. A decision maker greatly relies on intuition, judgment, and experience.

Which of the following statements is true about the decision-making process? a. It seldom applies to situations that are positive. b. It typically involves only one individual and seldom applies to groups. c. It requires that the nature of a particular situation be defined. d. It exclusively applies to problem situations. e. It results in the generation of only one alternative.

c. It requires that the nature of a particular situation be defined.

R&D at Venus Electronics Inc. has created an innovative new device. Management now needs to decide if Venus should launch this device as its next new product. This is an example of a(n) _____ decision. a. standard b. programmed c. nonprogrammed d. structured e. operational

c. nonprogrammed

Professor Chavez needs to choose a biology textbook for her class. Both textbooks under consideration are known for the clarity and extensiveness of their content. When Chavez chooses a textbook, she is making a decision in a state of _____. a. imperfect information b. risk c. ambiguity d. irrationality e. certainty

e. certainty

Which of the following statements is true in the context of decision-making under a state of risk? a. The decision maker has an accurate understanding of the payoffs of all the alternatives. b. The decision maker seldom considers his or her past experience while making the decision. c. The decision maker uses probability estimates to assess alternatives. d. The decision maker clearly knows the alternatives. e. The decision maker is least likely to choose a bad alternative.

c. The decision maker uses probability estimates to assess alternatives.

What is one of the factors that makes an alternative infeasible? a. Increased satisfactoriness b. Increase in production capacity c. Decrease in expenditure d. Legal barriers e. Low costs

d. Legal barriers

One of the four coffee machines at Jolanta's coffee shop has broken down three times in two weeks. Jolanta is trying to decide if the problem is a bad machine or if people are just using the machine wrong. Jolanta is currently _____. a. consulting with other decision makers b. eliminating feasible alternatives c. evaluating the results of a chosen alternative d. recognizing and defining the decision situation e. implementing an alternative

d. recognizing and defining the decision situation.

Delta Corp. introduced a new set of policies, giving its employees more flexibility in work hours. This decision was made in response to complaints from employees about fatigue. Which step of the rational decision-making process is illustrated in the scenario? a. allows no room for flexibility b. provides managers with alternatives c. describes how decisions often are actually made d. tells managers how they should make decisions e. assumes all decisions are made subjectively

d. tells managers how they should make decisions.