Exam 2: Decision Making

What is the psychological orientation of a decision maker who makes a "maximin" choice?

A few decades ago, Walmart opened stores in Germany. After a few years, it closed all of them. The shopping habits of Europeans differed so much from that of Americans that the stores could not become profitable. What was Walmart's mistake?

After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________.

Lila believes the global climate is changing. Every storm, every volcano eruption, every earthquake is, in her mind, evidence of this climate change. Lila has fallen victim to ________ bias.

A(n) ________ decision is a repetitive decision that can be handled by a routine approach.

Implementing an alternative refers to the process of choosing the best alternative.

Garrett looked at the list of orders for the coming week and made out the production schedule. He has done this so many times he could do it in his sleep. This situation represents a(n) ________.

The last time he flew Jet Value Air, Juan's plane developed a fuel leak and had to make an emergency landing. The time before that, his plane was grounded because of an electrical problem. Juan is sure his current trip will be fraught with problems and he will once again be delayed. This is an example of the ________ bias

Edgar hired a graduate from his alma mater, thinking he would be a successful first line supervisor. Unfortunately the new hire hasn't worked out as well as hoped. Edgar decided to invest time and money in training for the new hire but saw little improvement. Next he assigned a successful supervisor to mentor the young employee. The problems persisted. Edgar is displaying ________.

Managers need to understand cultural differences to make effective decisions in today's fast-moving world.

The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

Dylan must choose among four candidates to fill his open accounting clerk position. If Dylan uses rational decision making, he will ________.

Nonprogrammed decision making relies on procedures, rules, and policies.

The ________ describes how decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

In the decision-making process, after allocating weights to the decision criteria, the decision maker lists viable alternatives that could resolve the problem.

Rules of thumb that managers use to simplify decision making are known as ________.

Max is planning to go away to college next year and is currently trying to figure out to which colleges he should apply. He would like to major in English Literature at an accredited liberal arts college, but is also looking for a university that offers financial aid. In terms of the decision-making process, these represent Max's ________.

Discuss the three types of programmed decisions that a manager depends on to resolve structured problems.

In the late 1970s, Apple launched the Apple computer for individual use. It was a radical concept; there was no precedent for this type of product. Under these circumstances, Apple faced a situation of ________.

Once the alternatives to solving a problem have been identified, the next step in the decision-making process is selecting one of these alternatives.