Question 1

The ability to develop a sound opinion based on one's evaluation of the importance of the information at hand is known as:

Accepted Answer

A) Bounded rationality 
B) Satisficing 
C) Intuition 
D) Judgment 
E) Heuristics

Question 2

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

Accepted Answer

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

Question 3

Individual ethics are derived from family, peers, and upbringing, but not personality and experience.

Accepted Answer

A) True 
 B)False

Question 4

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) Heuristics 
B) Intuition 
C) Decision making 
D) Bounded rationality 
E) Systematic error

Question 5

Which of the following is NOT one of the criteria used by managers to evaluate the pros and cons of alternative courses of action?

Accepted Answer

A) Practical 
B) Prior hypothesis bias 
C) Ethical 
D) Economical 
E) Legal

Question 6

The error of considering the most recent data to have the most relevance to a problem is known as a confirmation bias.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

The administrative model of decision making recognizes that the assumptions underlying the rational model are realistic.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

Showing disregard for social responsibility, and a willingness to engage in and cover up unethical and illegal behaviour is known as a(n):

Accepted Answer

A) Obstructionist approach 
B) Proactive approach 
C) Defensive approach 
D) Accommodative approach 
E) Distributive approach SHORT ANSWER.Write the word or phrase that best completes each statement or answers the question.

Question 11

Discuss the assumptions that underlie the classical or rational model of decision making.

Accepted Answer

The answer of Discuss the assumptions that underlie the classical...

Question 12

When a manager has trouble deciding what to do, they may be facing an ethical dilemma.

Accepted Answer

A) True 
 B)False

Question 13

The administrative model is based on three important concepts: bounded rationality, complete information, and satisficing.

Accepted Answer

A) True 
 B)False

Question 14

The administrative model of decision making is based on which of the following concepts?

Accepted Answer

A) Uncertainty of the consequences of every alternative 
B) Cognitive limitations of managers 
C) Choosing barely satisfactory solutions to problems 
D) None of these choices are correct 
E) All of these choices are correct

Question 15

A company that takes a defensive approach to social responsibility will comply with the law but not go above and beyond its requirements.

Accepted Answer

A) True 
 B)False

Question 16

Learning from the results of past decisions should include the following steps:

Accepted Answer

A) Develop guidelines that will help in future decision making 
B) Compare what actually happened to what was expected to happen 
C) Explore why any expectations for the decision were not met 
D) All of these steps should be involved 
E) None of these steps should be involved

Question 17

Satisficing is when managers fail to explore all the possible alternatives and choose one that only minimally solves the problem.

Accepted Answer

A) True 
 B)False

Question 18

The premise of the classical or rational model is that once managers recognize the need to make a decision they should be able to generate a complete list of alternatives and consequences, from which they can make the best choice.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) Choosing among alternatives 
B) Generating alternatives 
C) Learning from feedback 
D) Assessing alternatives 
E) All of these choices are steps in the decision-making process

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 3: Managing Decision Making

The ability to develop a sound opinion based on one's evaluation of the importance of the information at hand is known as:

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

Individual ethics are derived from family, peers, and upbringing, but not personality and experience.

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

Which of the following is NOT one of the criteria used by managers to evaluate the pros and cons of alternative courses of action?

The error of considering the most recent data to have the most relevance to a problem is known as a confirmation bias.

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

The administrative model of decision making recognizes that the assumptions underlying the rational model are realistic.

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

Showing disregard for social responsibility, and a willingness to engage in and cover up unethical and illegal behaviour is known as a(n) :

Discuss the assumptions that underlie the classical or rational model of decision making.

When a manager has trouble deciding what to do, they may be facing an ethical dilemma.

The administrative model is based on three important concepts: bounded rationality, complete information, and satisficing.

The administrative model of decision making is based on which of the following concepts?

A company that takes a defensive approach to social responsibility will comply with the law but not go above and beyond its requirements.

Learning from the results of past decisions should include the following steps:

Satisficing is when managers fail to explore all the possible alternatives and choose one that only minimally solves the problem.

The premise of the classical or rational model is that once managers recognize the need to make a decision they should be able to generate a complete list of alternatives and consequences, from which they can make the best choice.

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

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