Deck 8: Decision Making: It Is a Matter of Choice

Question 1

Once you have decided on an alternative, it is best not to review your decision because research has shown that the first choice most people make is usually the best.

Answer 1

False

Question 2

If we develop the habit of writing lists of alternatives on paper, then we don't have to be concerned about the possibility that memory is biasing the decision making process.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

We tend to judge information that is easy to recall as more frequent in occurrence than information that is difficult to recall.

Question 5

When picking 6 lottery numbers, 12, 7, 4, 31, 6, 28 is more likely to win (if the lottery is fair) than 1, 2, 3, 4, 5, 6.

Question 6

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.

Question 7

The fact that you are familiar with something or someone will influence your decision so that the alternative or person is evaluated more favorably than a less familiar alternative or person.

Question 8

There is a considerable body of evidence that shows that people make better decisions when they use a worksheet procedure.

Question 9

A decision should always be judged by the quality of its outcome.

Question 10

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?

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 11

Wishful thinking can be described as

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 12

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

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

Question 13

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

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

Question 14

Laura's parents refuse to let her date Lance, the boy she met on vacation, because he does not share the family's religious beliefs. Laura and Lance are now more in love than ever! This increased attraction to each other is likely the result of

A) confirmation bias.
B) overconfidence.
C) psychological reactance.
D) emotional discouragement.

Question 15

The tendency to like people who like us is called

A) reciprocity.
B) cognitive dissonance.
C) entrapment.
D) the mere exposure effect.

Question 16

According to the mere exposure effect, I am most likely to be friends with

A) very attractive people.
B) people who are similar to me.
C) people in my classes.
D) people who like me.
E) All of the above

Question 17

According to the law of reciprocity, I am most likely to be friends with

A) very attractive people.
B) people who are similar to me.
C) people in my classes.
D) people who like me.
E) All of the above

Question 18

Reactance and liking are both examples of the influence of __________ on decision making.

A) values
B) personal relationships
C) reciprocity
D) emotions

Question 19

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

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 20

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

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

Question 21

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?

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 22

Describe the methods and results of the Smedslund (1963) study examining the decision making of nurses. Explain how the confirmation bias may have led to the results.

Question 23

Describe four pitfalls in decision making, including examples

Question 24

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.

Question 25

Describe the steps involved in preparing a decision worksheet.

Question 26

I have never heard of the Tokking Contests held in Greece, but I think the Athens Tokkers are more likely to win than the Daliante Tokkers if I use the

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

Question 27

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.

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

Question 28

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

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 29

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

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 30

Which of the following statements does NOT accurately describe the process of decision making?

A) Decision making is an active process
B) Decision making can be stressful
C) The quality of decisions needs to be judged on what was known or should have been known at the time the decision was made
D) Sometimes good decisions will have undesirable outcomes and sometimes poor decisions will have desirable outcomes
E) All of the above accurately describe the process of decision making

Question 31

Which of the following terms refers to the value of a particular choice to an individual?

A) Subjective utility
B) Objective norms
C) Value-added attitudes
D) Personal evaluations

Question 32

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

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

Question 33

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

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

Question 34

The Smedslund (1963) study which examined decision making by trained nurses provided evidence for

A) wishful thinking.
B) the confirmation bias.
C) differences in decisions made by novices and experts.
D) overconfidence.

Question 35

Research on overconfidence indicates that

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 36

Heuristics are used

A) to utilize all available information.
B) to reduce complex tasks to simpler cognitive operations.
C) typically only by novices.
D) only for very simple tasks.

Question 37

Heuristics are usually used in tasks involving

A) the evaluation of multiple decision alternatives.
B) the assessment of probabilities.
C) calculations involving mathematical formulas.
D) complex judgments of cause.

Question 38

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

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

Question 39

Use of the representativeness heuristic typically leads to

A) overestimation of the frequency of a class.
B) wishful thinking.
C) an overreliance on salience.
D) ignoring base rates.
E) All of the above

Question 40

Which of the following statements is NOT true of heuristics?

A) They help us make decisions rapidly
B) They are cognitive shortcuts
C) Their use is affected by experience
D) Heuristics almost always lead to major errors in decision making
E) All of the above are true of heuristics

Question 41

Which of the following statements is NOT true of heuristics?

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 42

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