Question 1

Errors that people make over and over and that result in poor decision making are known as:

Accepted Answer

A)  systematic errors
B)  representative bias
C)  confirmation bias
D)  illusion of control and overconfidence bias
E)  recency effectF) B) and D)
G) B) and E)

Question 2

Nonroutine decision making that occurs in response to unusual,unpredictable opportunities,and threats is known as:

Accepted Answer

A)  Heuristic decision making
B)  Nonprogrammed decision making
C)  Programmed decision making
D)  Groupthink decision making
E)  Creative decision makingF) A) and D)
G) A) and C)

Question 3

Routine,virtually automatic decision making that follows established rules or guidelines are known as:

Accepted Answer

A)  Heuristic decisions
B)  Nonprogrammed decisions
C)  Programmed decisions
D)  Groupthink decisions
E)  Creative decisionsF) B) and D)
G) B) and C)

Question 4

Creativity is the ability of the decision maker to discover original ideas.

Accepted Answer

A) True 
 B)False

Question 5

The rational or classical model of decision making assumes:

Accepted Answer

A)  that managers have all the information they need to make an optimal decision
B)  that managers often do not act in the best interests of the organization
C)  that a manager's ability to be rational is limited or bounded
D)  that managers tend to satisfice
E)  that managers often make decisions under conditions of uncertaintyF) All of the above
G) D) and E) A

Question 6

Having a minimal commitment to social responsibility,and a willingness to do what the law requires and no more is known as what type of approach to social responsibility?

Accepted Answer

A)  Obstruction approach
B)  Defensive approach
C)  Accommodative approach
D)  Proactive approach
E)  Distributive approachF) A) and B)
G) B) and E)

Question 7

An organization's code of ethics is derived from which of the following?

Accepted Answer

A)  Societal ethics
B)  Professional ethics
C)  Individual ethics
D)  Professional and individual ethics
E)  Societal,professional,and individual ethicsF) B) and E)
G) B) and C)

Question 8

A source of cognitive bias resulting from the tendency to overestimate one's own ability to control activities and events is known as:

Accepted Answer

A)  systematic errors
B)  representative bias
C)  escalating commitment
D)  illusion of control and overconfidence bias
E)  fundamental attribution errorF) B) and E)
G) A) and D)

Question 9

Which of the following is not a step in the decision-making process?

Accepted Answer

A)  Generating alternatives
B)  Assessing alternatives
C)  Learning from feedback
D)  Choosing among alternatives
E)  Seek feedback from competitorsF) B) and E)
G) C) and D)

Question 10

The last step in the decision-making process is to learn from feedback.

Accepted Answer

A) True 
 B)False

Question 11

The process by which managers respond to opportunities and threats that confront their organization by analyzing options and taking actions is known as:

Accepted Answer

A)  Decision making
B)  Bounded rationality
C)  Systematic error
D)  Intuition
E)  HeuristicsF) B) and C)
G) None of the above

Question 12

Prior hypothesis bias occurs when managers make decisions based on strong beliefs that they think apply to the situation even when they don't.

Accepted Answer

A) True 
 B)False

Question 13

The tendency of decision makers to overestimate their ability is known as representativeness bias.

Accepted Answer

A) True 
 B)False

Question 14

When a manager must decide whether he/she has the capabilities and resources required to implement the alternate causes of action,upon which criteria for decision making is this manager focusing?

Accepted Answer

A)  Practicality
B)  Economic feasibility
C)  Legality
D)  Ethnicity
E)  UrgencyF) B) and E)
G) A) and B)

Question 15

Differentiate between programmed and nonprogrammed decisions and include two examples of each type of decision.

Accepted Answer

Programmed decision making is routine,au...

Question 16

An organization in which managers try to maximize the ability of individuals and groups to think and behave creatively and thus maximize the potential for organizational learning to take place is known as:

Accepted Answer

A)  a learning organization
B)  a groupthink organization
C)  a privately held organization
D)  a heuristic organization
E)  an ergonomic organizationF) C) and E)
G) A) and B) A

Question 17

Rules of thumb that simplify decision making are called heuristics.

Accepted Answer

A) True 
 B)False

Question 18

The ability to make sound decisions based on one's experience and immediate feelings about the information at hand is called:

Accepted Answer

A)  Judgment
B)  Bounded rationality
C)  Heuristics
D)  Satisficing
E)  IntuitionF) A) and D)
G) B) and C)

Question 19

Managers who are rational in the way they process information but can handle more ambiguity and uncertainty have which decision-making style?

Accepted Answer

A)  Analytic
B)  Conceptual
C)  Directive
D)  Behavioural
E)  IntuitiveF) A) and C)
G) B) and D)

Question 20

A regional manager decided to increase production based on random data that were interpreted to show a pattern of increased sales.Which type of bias does this reflect?

Accepted Answer

A)  Systematic errors
B)  Representative bias
C)  Clustering illusion
D)  Illusion of control and overconfidence bias
E)  Prior hypothesis biasF) B) and C)
G) A) and E) C

Exam 3: Managing Decision Making

Errors that people make over and over and that result in poor decision making are known as:

Correct AnswerverifiedShow Answer

Nonroutine decision making that occurs in response to unusual,unpredictable opportunities,and threats is known as:

Correct AnswerverifiedShow Answer

Routine,virtually automatic decision making that follows established rules or guidelines are known as:

Correct AnswerverifiedShow Answer

Creativity is the ability of the decision maker to discover original ideas.

Correct AnswerverifiedShow Answer

The rational or classical model of decision making assumes:

Correct AnswerverifiedA

Having a minimal commitment to social responsibility,and a willingness to do what the law requires and no more is known as what type of approach to social responsibility?

Correct AnswerverifiedShow Answer

An organization's code of ethics is derived from which of the following?

Correct AnswerverifiedShow Answer

A source of cognitive bias resulting from the tendency to overestimate one's own ability to control activities and events is known as:

Correct AnswerverifiedShow Answer

Which of the following is not a step in the decision-making process?

Correct AnswerverifiedShow Answer

The last step in the decision-making process is to learn from feedback.

Correct AnswerverifiedShow Answer

The process by which managers respond to opportunities and threats that confront their organization by analyzing options and taking actions is known as:

Correct AnswerverifiedShow Answer

Prior hypothesis bias occurs when managers make decisions based on strong beliefs that they think apply to the situation even when they don't.

Correct AnswerverifiedShow Answer

The tendency of decision makers to overestimate their ability is known as representativeness bias.

Correct AnswerverifiedShow Answer

When a manager must decide whether he/she has the capabilities and resources required to implement the alternate causes of action,upon which criteria for decision making is this manager focusing?

Correct AnswerverifiedShow Answer

Differentiate between programmed and nonprogrammed decisions and include two examples of each type of decision.

Correct AnswerverifiedProgrammed decision making is routine,au...View AnswerShow Answer

An organization in which managers try to maximize the ability of individuals and groups to think and behave creatively and thus maximize the potential for organizational learning to take place is known as:

Correct AnswerverifiedA

Rules of thumb that simplify decision making are called heuristics.

Correct AnswerverifiedShow Answer

The ability to make sound decisions based on one's experience and immediate feelings about the information at hand is called:

Correct AnswerverifiedShow Answer

Managers who are rational in the way they process information but can handle more ambiguity and uncertainty have which decision-making style?

Correct AnswerverifiedShow Answer

A regional manager decided to increase production based on random data that were interpreted to show a pattern of increased sales.Which type of bias does this reflect?

Correct AnswerverifiedC

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Programmed decision making is routine,au...
View Answer

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C