Question 1

Objective linear models are also called fault tree models.

Accepted Answer

A) True 
 B)False

Question 2

The case of the U.S.automobile industry maintaining the status quo while the Japanese developed innovative new solutions to old problems is an example of:

Accepted Answer

A) openness to new frames 
B) poor decision frame management 
C) abandoning an operations research perspective 
D) relying too heavily on Bayes Theorem 
E) high need for cognitive closure

Question 3

Preference reversals are more likely to occur when a decision maker focuses on costs or benefits unequally.

Accepted Answer

A) True 
 B)False

Question 4

Freezing refers to the tendency to attain cognitive closure quickly.

Accepted Answer

A) True 
 B)False

Question 5

As the need for cognitive closure increases:

Accepted Answer

A) people consider more alternatives. 
B) people consider larger amounts of information about each individual alternative. 
C) people make snap or quick conclusions. 
D) people become more sensitive to inconsistent evidence. 
E) people exhibit lower levels of confidence with their decision.

Question 6

The decision aid involving the construction of a key list of inputs for a decision, importance weights for each input, and objective ratings of each input for each decision alternative is known as:

Accepted Answer

A) an actuarial model 
B) an objective linear model 
C) a subjective linear model 
D) Both a and b are correct. 
E) None of the above are correct.

Question 7

Research shows that people are very good predicting future events.

Accepted Answer

A) True 
 B)False

Question 8

Confidence tends to increase as to omission (missing information) .

Accepted Answer

A) sensitivity; increases 
B) insensitivity; increases 
C) attention; decreases 
D) calibration; increases 
E) sensitivity; decreases

Question 9

People use base rate information when the causal relevance of the information is apparent.

Accepted Answer

A) True 
 B)False

Question 10

Episternic seizing and freezing generally improves managerial decision making.

Accepted Answer

A) True 
 B)False

Question 11

is a desire for defmite knowledge, rather than ambiguity or confusion.

Accepted Answer

A) Judgment convergence 
B) Need for cognition 
C) Bayes theorem 
D) Calibration theory 
E) None of the above is correct.

Question 12

"Bootstrapping" is the opposite oflinear modeling.

Accepted Answer

A) True 
 B)False

Question 13

What is the outcome when managers focus mainly on benefits?

Accepted Answer

The answer of What is the outcome when managers focus...

Question 14

The "operations research perspective" suggests the best way to control product costs is to produce many units of the same component before making changes to the production process.

Accepted Answer

A) True 
 B)False

Exam 19: Strategies for Improving Managerial Decision Making

Objective linear models are also called fault tree models.

The case of the U.S.automobile industry maintaining the status quo while the Japanese developed innovative new solutions to old problems is an example of:

Preference reversals are more likely to occur when a decision maker focuses on costs or benefits unequally.

Freezing refers to the tendency to attain cognitive closure quickly.

As the need for cognitive closure increases:

The decision aid involving the construction of a key list of inputs for a decision, importance weights for each input, and objective ratings of each input for each decision alternative is known as:

Research shows that people are very good predicting future events.

Confidence tends to increase as to omission (missing information) .

People use base rate information when the causal relevance of the information is apparent.

Episternic seizing and freezing generally improves managerial decision making.

is a desire for defmite knowledge, rather than ambiguity or confusion.

"Bootstrapping" is the opposite oflinear modeling.

What is the outcome when managers focus mainly on benefits?

The "operations research perspective" suggests the best way to control product costs is to produce many units of the same component before making changes to the production process.