MANAGERIAL DECISION MAKING AND INFORMATION TECHNOLOGY
*1. Because everybody makes decisions everyday, decision making is easy.
2. Decision making is the process of identifying problems and opportunities and then resolving them.
*3. The two categories of decision processes rely on either real or imagined problems.
4. A determination made from available alternatives is called a decision.
5. Johnne Morria works for a backpack manufacturer. He has been instructed to decide what primary need women backpackers have that men users do not have. He will be making a nonprogrammed decision.
6. Decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions are called programmed decisions.
7. Under conditions of risk, enough information is available to allow the probability of a successful outcome for each alternative to be estimated.
*8. Uncertainty refers to a situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcome is unavailable.
9. Fortunately, most decisions are not characterized by ambiguity.
10. By far the most difficult decision situation is uncertainty.
11. The classical decision-making model assumes that the decision maker is rational, and makes the optimal decision each time.
*12. The use of computerized information systems and databases has decreased the effectiveness of the classical approach of decision making.
13. Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality.
14. Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist.
15. The administrative model of decision