Question 1

Which of the following is NOT a characteristic of a high-quality decision?

Accepted Answer

A)  generation of few decision alternatives 
B)  well-thought out (not hasty) 
C)  considers all available information 
D)  careful evaluation of decision alternatives 
E)  All of the above are characteristic of high-quality decisions

Question 2

Wishful thinking can be described as

Accepted Answer

A)  the Pollyanna Principle. 
B)  unrealistic optimism. 
C)  overestimation of the frequency of pleasant events. 
D)  underestimation of the frequency of unpleasant events. 
E)  All of the above

Question 3

A pitfall that arises in decisions about whether or not to continue an activity is called

Accepted Answer

A)  entrapment. 
B)  the continuance effect. 
C)  overconfidence. 
D)  wishful thinking.

Question 4

Krulwich (2009) found that there are lower "spillage" rates in urinals with a fly etched in the bowl, apparently because men like to aim at something while urinating. This is an example of

Accepted Answer

A)  total insanity. 
B)  a hidden need to kill flies. 
C)  a cognitive nudge. 
D)  cognitive dissonance. 
E)  None of the above

Question 5

After careful thought, Jane decided to buy a BMW instead of a Cadillac. Her friend Sue is interested in buying a Cadillac, and asks Jane what she thinks of them. According to cognitive dissonance theory, what is Jane likely to tell Sue?

Accepted Answer

A)  Cadillacs are better than BMWs. 
B)  BMWs are better than Cadillacs. 
C)  BMWs and Cadillacs are pretty much the same. 
D)  Sue should buy a Lexus. 
E)  None of the above

Question 6

Describe the process of biased discounting, including a description of how it may have affected decision making prior to the Japanese attack on Pearl Harbor.

Accepted Answer

The answer of Describe the process of biased discounting, including...

Question 7

Which of the following statements is NOT true of heuristics?

Accepted Answer

A)  They help us make decisions rapidly 
B)  They are cognitive shortcuts 
C)  Their use is affected by experience 
D)  Under some conditions, thinking with heuristics is fairly accurate 
E)  All of the above are true of heuristics

Question 8

Research on overconfidence indicates that

Accepted Answer

A)  it is unrelated to the confirmation bias. 
B)  people are overconfident because they cannot remember other possible alternatives after a decision has been made. 
C)  people are overconfident because they rely on accurate heuristics in making decisions. 
D)  people are overconfident because they usually know about all relevant information associated with a decision. 
E)  All of the above

Question 9

If you believe that there are more homicides than deaths from heart disease because homicides are very vivid in your memory and easy for you to recall, you are making your judgment using the

Accepted Answer

A)  colorful heuristic. 
B)  availability heuristic. 
C)  representativeness heuristic. 
D)  salience heuristic.

Question 10

Emily is in a book club group, and she feels like if she doesn't always love the books, the other members get annoyed at her. She feels like she needs to agree with the group, so she decided not to make many comments at all. It sounds like Emily's book group is in danger of experiencing

Accepted Answer

A)  group consensus. 
B)  group think. 
C)  group identity. 
D)  groupiness. 
E)  None of the above

Question 11

Explain the hindsight bias. How did hindsight affect the public's reaction to the September 11, 2001 attack on the World Trade Center?

Accepted Answer

The answer of Explain the hindsight bias. How did hindsight...

Question 12

Describe four pitfalls in decision making, including examples

Accepted Answer

The answer of Describe four pitfalls in decision making, including...

Question 13

Based on Figure 8.1 and the stages of decision making identified in Chapter 8 of your textbook, which of the following shows stages of decision making in the correct order?

Accepted Answer

A)  Identification, generation of alternatives, evaluation of alternatives, selection. 
B)  Generation of alternatives, identification, evaluation of alternatives, selection. 
C)  Identification, selection, generation of alternatives, evaluation of alternatives. 
D)  Generation of alternatives, evaluation of alternatives, identification, selection. 
E)  None of the above

Question 14

Which of the following represents the first stage of decision making?

Accepted Answer

A)  Identification or realization that a decision is needed 
B)  Generation of two or more alternatives that would satisfy a goal or desired outcome implied by the decision 
C)  Evaluation of "pros" and "cons" of each alternative 
D)  Selection of an alternative or action 
E)  None of the above

Question 15

When New Coke was introduced and consumers were no longer able to choose original Coca-Cola, it is likely that New Coke failed because consumers experienced

Accepted Answer

A)  cognitive dissonance. 
B)  overconfidence. 
C)  psychological reactance. 
D)  emotional discouragement.

Question 16

The objective criterion for a good decision is that it has __________ for the person deciding.

Accepted Answer

A)  Low objective norms 
B)  Positive value-added attitudes 
C)  Many personal evaluations 
D)  High subjective utility 
E)  None of the above

Question 17

When people are highly confident about their ability to make sound decisions, their self-confidence is usually warranted.

Accepted Answer

A) True 
 B)False

Question 18

The __________ is a decision making "rule of thumb" in which determination of a event's likelihood is based on its recognizability, so that events that are recognized are viewed as more probable than those that are not.

Accepted Answer

A)  rapid assessment heuristic 
B)  availability heuristic 
C)  recognition heuristic 
D)  representativeness heuristic 
E)  None of the above

Question 19

When you are deciding about continuing a project in which you have already invested time and money, the amount of time and money that you have previously invested should be the primary consideration.

Accepted Answer