Decision Making and Page Ref

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Chapter 3: Foundations of Decision Making

1.

In decision making, a problem can be defined as a discrepancy between what exists and what the problem solver desires to exist. Answer:

True

False
Diff: 2

Page Ref: 84
Objective: 3.1

2.

The second step in the decision-making process is identifying a problem. Answer:

True

False
Diff: 1

Page Ref: 85
Objective: 3.1

3.

A decision criterion defines factors that are relevant in a decision. Answer:

True

False
Diff: 2

Page Ref: 85
Objective: 3.1

4.

Managers identify a problem by comparing the current state of affairs to some standard. Answer:

True

False
Diff: 3

Page Ref: 85
Objective: 3.1

5.

All criteria are equally important in the decision-making process. Answer:

True

False
Diff: 2

Page Ref: 85
Objective: 3.1

6.

Identifying the wrong problem is just as much a failure for a manager as identifying the right problem and failing to solve it. Answer:

True

False
Diff: 2

Page Ref: 85
Objective: 3.1

7.

The final step of the decision-making process is to implement the alternative that has been selected. Answer:

True

False
Diff: 1

Page Ref: 87
Objective: 3.1

8.

A heuristic can simplify the decision-making process.
Answer:

True

False
Diff: 1

Page Ref: 88
Objective: 3.1

9.

Because heuristics simplify the decision-making process, they are unlikely to lead to errors. Answer:

True

False
Diff: 1

Page Ref: 88
Objective: 3.1

10.

Decision makers who "cherry-pick" information that matches what they already know are guilty of confirmation bias. Answer:

True

False
Diff: 1

Page Ref: 88
Objective: 3.1

11.

A basketball coach who takes a very good shooter out of a game because she missed her last two shots has availability bias. Answer:

True

False
Diff: 1

Page Ref: 89
Objective: 3.1

12.

A rational decision will never fail to provide the best and most successful solution to a problem. Answer:

True

False
Diff: 3

Page Ref: 90
Objective: 3.2

13.

Maximizing value means a decision will have the best possible outcome for the parties involved. Answer:

True

False
Diff: 2

Page Ref: 91
Objective: 3.2

14.

One assumption of bounded rationality is that managers can analyze all relevant information about all alternatives for a situation. Answer:

True

False
Diff: 2

Page Ref: 91
Objective: 3.2

15.

A synonym for the word satisfice is maximize.
Answer:

True

False
Diff: 2

Page Ref: 91
Objective: 3.2

16.

One assumption of bounded rationality is that managers usually make rational decisions. Answer:

True

False
Diff: 2

Page Ref: 92
Objective: 3.2

17.

Intuitive decision making is systematic, logical, and orderly. Answer:

True

False
Diff: 2

Page Ref: 92
Objective: 3.2

18.

Intuitive decision making cannot be a part of the rational decision-making process. Answer:

True

False
Diff: 2

Page Ref: 92
Objective: 3.2

19.

The expression "throwing good money after bad" is an example of an escalation of commitment. Answer:

True

False
Diff: 2

Page Ref: 92
Objective: 3.2

20.

Emotions should always be strictly ignored in a decision-making process. Answer:

True

False
Diff: 2

Page Ref: 93
Objective: 3.2

21.

Programmed decisions tend to be routine.
Answer:

True

False
Diff: 1

Page Ref: 94
Objective: 3.3

22.

A rule is simpler than a policy or a procedure to implement. Answer:

True

False...
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