Exam 6: Perception and Individual Decision Making

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Explain the process of bounded rationality for the typical individual.

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Since the capacity of the human mind for formulating and solving complex problems is far too small to meet the requirements for full rationality,individuals operate within the confines of bounded rationality.They construct simplified models that extract the essential features from problems without capturing all their complexity.Individuals can then behave rationally within the limits of the simple model.Once the limited set of alternatives is identified,the decision maker will begin reviewing it.But the review will not be comprehensive.Instead,the decision maker will begin with alternatives that differ only in a relatively small degree from the choice currently in effect.Following along familiar and well-worn paths,the decision maker proceeds to review alternatives only until he or she identifies an alternative that is "good enough".The first alternative that meets the "good enough" criterion ends the search.So the final solution represents a satisficing choice rather than an optimum one.

When we judge someone on the basis of our perception of the group to which he/she belongs,we are using the shortcut called:

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Men and women make decisions differently,and this gap in decision performance continues to grow as we get older.

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The satisficing decision maker is best characterised as:

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An individual's place in the interview schedule may affect the interviewer's evaluation of the applicant.This example illustrates the halo effect.

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Interviewers make perceptual judgments that:

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Decisions made so as to provide the greatest good for the greatest number are based on:

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A satisficing solution is both satisfactory and sufficient.

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Expertise is the foundation for all creative work.

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If two people see the same thing at the same time yet interpret it differently,the factors that operate to shape their dissimilar perceptions reside in the:

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Whether an individual displays different behaviours in different situations is referred to as:

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Overconfidence bias occurs when people over-estimate their abilities to make sound decisions.What type of person is most likely to fail through overconfidence bias?

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Your boss never gives you the benefit of the doubt.When you were late this morning,he assumed that you had overslept.He never considered that there might have been a delay on the freeway.He is guilty of:

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________ is the tendency to attribute one's own characteristics to other people.

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The self-serving bias explains why a sales manager is prone to attribute the poor performance of her sales agents to laziness rather than to the innovative product line introduced by a competitor.

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Discuss three different criteria for ethical decision making.

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The more consistent a behaviour,the more the observer is inclined to:

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The judgment of the evaluator plays an important role in subjective criteria used to do performance evaluations.

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A process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment is called:

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The theory that has been developed to explain why we judge people differently depending on what meaning we assign to their behaviour in response to internal or external causality is known as:

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