Question 1

Managers experience the pseudodiagnosticity effect any time they treat irrelevant information as relevant.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a bias based on overprocessing?

Accepted Answer

A)  The dilution effect 
B)  The perseverance effect 
C)  The correspondence bias 
D)  Premature cognitive commitment 
E)  All of the above are based on overprocessing.

Question 3

Judgmental accuracy is influenced by the amount of processing effort a decision maker is likely to allocate to a judgment task.

Accepted Answer

A) True 
 B)False

Question 4

What are the most common types of context effects?

Accepted Answer

The answer of What are the most common types of...

Question 5

Job interviews are often influenced by the correspondence bias.

Accepted Answer

A) True 
 B)False

Question 6

Home appraisals offered by real estate agents are heavily influenced by listing prices, even when more objective and more useful information is available. Which cognitive heuristic is responsible for this bias?

Accepted Answer

A)  Correspondence bias 
B)  Availability heuristic 
C)  Simulation heuristic 
D)  Anchoring-and-adjustment heuristic 
E)  Premature cognitive commitment effect

Question 7

What effect could bright color potentially have on information being presented? Why?

Accepted Answer

The answer of What effect could bright color potentially have...

Question 8

What does Diagnosticity depend upon?

Accepted Answer

The answer of What does Diagnosticity depend upon?...

Question 9

Decision makers rarely continue to perceive a belief as true when the basis for the belief is disproved.

Accepted Answer

A) True 
 B)False

Question 10

After approving a $100,000 expenditure for a new piece of capital equipment, deciding to spend $10,000 on a print advertisement seems inconsequential. This is an example of what type of effect?

Accepted Answer

A)  Biased assimilation effect 
B)  Framing effect 
C)  Correspondence bias effect 
D)  Contrast effect 
E)  Availability heuristic

Question 11

According to your readings, unbiased decision making is impossible when _____ and _____ are biased.

Accepted Answer

A)  perception and attention 
B)  motivation and learning 
C)  attention and learning 
D)  attention and memory 
E)  memory and motivation

Exam 17: Biases in Managerial Decision Making

Managers experience the pseudodiagnosticity effect any time they treat irrelevant information as relevant.

Which of the following is not a bias based on overprocessing?

Judgmental accuracy is influenced by the amount of processing effort a decision maker is likely to allocate to a judgment task.

What are the most common types of context effects?

Job interviews are often influenced by the correspondence bias.

Home appraisals offered by real estate agents are heavily influenced by listing prices, even when more objective and more useful information is available. Which cognitive heuristic is responsible for this bias?

What effect could bright color potentially have on information being presented? Why?

What does Diagnosticity depend upon?

Decision makers rarely continue to perceive a belief as true when the basis for the belief is disproved.

After approving a $100,000 expenditure for a new piece of capital equipment, deciding to spend $10,000 on a print advertisement seems inconsequential. This is an example of what type of effect?

According to your readings, unbiased decision making is impossible when _ and _ are biased.