Question 1

The condition under which ambiguity occurs is when:
A) alternatives are difficult to define.
B) objectives are well defined.
C) information about outcomes is readily available.
D) all the alternatives are known.
E) decisions are already made.

Accepted Answer

Ambiguity occurs when alternatives are difficult to define, creating uncertainty and making it challenging to select an optimal choice. When objectives are well-defined, information about outcomes is readily available, and all alternatives are known, there is less ambiguity involved in decision-making. Decisions that have already been made do not involve ambiguity since there are no choices left to select from.

Question 2

Which of the following means that even though a manager may have clearly defined targets based on the available information,the future results associated with each alternative are subject to chance
A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Brainstorming

Accepted Answer

The answer of Which of the following means that even...

Question 3

Which of the following means that each and every piece of information is fully available to a decision maker
A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) None of these

Accepted Answer

Certainty means that the decision maker has full and complete information, leaving no room for doubt or ambiguity.

Question 4

During the fallout of the global financial crisis of 2008,governments had to make important decisions in a highly ambiguous environment.The decision to buy out failed banks could best be described as what type of decision
A) Bounded
B) Programmed
C) Conventional
D) Wicked decision problem
E) Irrational decision

Accepted Answer

The decision to buy out failed banks during the global financial crisis of 2008 was a complex decision problem, with no clear or predictable outcomes, involving multiple stakeholders with different perspectives and interests. This type of decision problem is known as a “wicked decision problem.”

Question 5

Which of the following means that goals are not clear and the problems are not defined,and likewise the alternatives cannot be found and the outcomes are not visible
A) Certainty
B) Low Risk
C) Some uncertainty
D) Ambiguity
E) Brainstorming

Accepted Answer

Ambiguity means that the goals, problems, and alternatives are not clear, making it difficult to determine outcomes.

Question 6

Under conditions of _____,statistical analyses of marketing data are often useful.
A) certainty
B) ambiguity
C) risk
D) uncertainty
E) conflict

Accepted Answer

Statistical analyses of marketing data are useful under conditions of risk because there is a possibility of multiple outcomes with known probabilities, and under conditions of uncertainty because the probabilities are unknown. In situations of certainty, statistical analyses may not be necessary as there is only one possible outcome. Ambiguity and conflict do not necessarily pertain to the need for statistical analyses.

Question 7

Associated with the condition of _____ is the lowest possibility of failure.
A) ambiguity
B) uncertainty
C) certainty
D) risk
E) all of these

Accepted Answer

Certainty means there is a complete absence of doubt, so there is no possibility of failure. Ambiguity and uncertainty involve some level of doubt or lack of clarity, while risk implies the possibility of failure.

Question 8

Which approach defines how a decision-maker should make decisions
A) Normative
B) Scientific
C) Descriptive
D) Reflective
E) Humanistic

Accepted Answer

The normative approach provides a framework for how a decision-maker SHOULD make decisions. It offers guidelines, rules and procedures to be followed while making decisions. The other approaches such as descriptive, reflective, humanistic or scientific explain how decisions are made or can be made, but do not necessarily provide a specified set of rules or guidelines to be followed.

Question 9

A manager is expected to make decisions that are in the organization's best economic interests.The decisions would be based on which of the following
A) The administrative model of decision making
B) The garbage can model of decision making
C) The scientific management model of decision making
D) The classical model of decision making
E) The humanistic model of decision making

Accepted Answer

The classical model of decision making emphasizes rationality, logic, and the use of formal procedures to arrive at an optimal decision. This approach is focused on maximizing economic gain and is therefore most appropriate for making decisions in the organization's best economic interests.

Question 10

A company CEO decided to acquire a rival company.This is an example of a:
A) programmed decision.
B) nonprogrammed decision.
C) decision rule.
D) structured decision.
E) bad community decision.

Accepted Answer

Acquiring a rival company is a strategic and non-routine decision that falls under nonprogrammed decisions. Programmed decisions are routine and repetitive decisions that can be solved using a pre-established decision rule or structured decision-making process. Decision rule is a set of criteria for making decisions, and structured decisions are those that can be made using a structured decision-making process, such as a mathematical formula or algorithm. "Bad community decision" is not a recognized term or concept in decision-making.

Question 11

When a hospital decides to add a radiation therapy unit,it is considered a:
A) programmed decision.
B) structured decision.
C) nonprogrammed decision.
D) poor management decision.
E) certainty decision.

Accepted Answer

Adding a radiation therapy unit is a nonprogrammed decision because it is a unique and complex decision that requires extensive analysis and evaluation of various alternatives. It does not have a pre-determined procedure like a structured decision or a routine like a programmed decision. The decision also involves a high degree of uncertainty and risk, making it inappropriate for a certainty decision. The option D is not a valid choice as it is not a decision type and is also an assumption about the decision's quality.

Question 12

The classical model of decision making is based on _____ assumptions.
A) philosophical
B) irrational
C) economic
D) uncertainty
E) technological

Accepted Answer

The classical model of decision making is based on economic assumptions, including the assumption that decision makers are rational and aim to maximize their utility or profits. These assumptions are often criticized for not accurately describing how people make decisions in real-life situations.

Question 13

A product manager wants to increase the market share of a product,but does not know which factor in the marketing mix is most important to achieving this goal.The manager is operating under a condition of _____.
A) risk
B) ambiguity
C) certainty
D) uncertainty
E) brainstorming

Accepted Answer

The product manager is unsure of which factor in the marketing mix is most important, indicating a lack of certainty and operating under conditions of uncertainty.

Question 14

Which of these assumptions are included in the classical model of decision making
A) Problems are unstructured and ill defined.
B) The decision-maker strives for conditions of certainty.
C) Criteria for evaluating alternatives are unknown.
D) The decision-maker selects the alternatives that will minimize the economic return to the organization.
E) The situation is always uncertain.

Accepted Answer

The classical model assumes that decision-makers strive for conditions of certainty, meaning they want all information available to make a fully informed decision. The other assumptions listed (A, C, D, and E) are not included in the classical model.

Question 15

_____ are almost always associated with conflicts between managers over goals and decision alternatives,rapidly changing circumstances,fuzzy information and unclear links among decision elements.
A) Nonprogrammed
B) Programmed
C) Wicked decision problems
D) Conventional
E) Good

Accepted Answer

Wicked decision problems refer to complex and ambiguous situations where there are multiple, often conflicting, goals and incomplete or uncertain information. They are characterized by high levels of uncertainty and ambiguity, making it difficult to determine the best course of action. Such problems are almost always associated with conflicts between managers over goals and decision alternatives and rapidly changing circumstances, leading to the need for creative solutions and adaptive decision-making processes. Nonprogrammed decisions are similar to wicked problems but specifically relate to unique decisions that require a custom approach. Programmed decisions, on the other hand, are routine decisions that follow established procedures. Conventional decisions are those that follow standard norms or practices. "Good" is not a valid option.

Question 16

_____ is by far the most difficult situation for a decision-maker.
A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Brainstorming for hours and hours

Accepted Answer

The answer of _____ is by far the most difficult...

Question 17

At the start of every shift,a truck driver plans out a route based on the addresses that he will be visiting to drop off packages.This can best be described as what kind of decision
A) Programmed
B) Nonprogrammed
C) Wicked
D) Administrative
E) Intuitive

Accepted Answer

This decision can be categorized as programmed since the truck driver plans out a route based on a pre-established set of rules or procedures, such as following a map or GPS and considering the distance and time involved in each stop.

Question 18

Which of the following has the highest possibility of failure
A) The condition of certainty
B) The condition of total ambiguity
C) The condition of slight uncertainty
D) The condition of low risk
E) All of these

Accepted Answer

Total ambiguity means there is no information or data available to make a decision, which increases the possibility of failure as decisions would be based solely on guesses or assumptions.

Question 19

The four positions on the possibility of failure scale include certainty,risk,ambiguity and _____.
A) uncertainty
B) conflict
C) necessity
D) indecision
E) possibility

Accepted Answer

The four positions on the possibility of failure scale include certainty, risk, ambiguity, and uncertainty. Therefore, the best choice is A.

Question 20

_____ means that managers might know the goals they want to achieve,but the information about alternatives and future events are incomplete.
A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Advocacy

Accepted Answer

Uncertainty refers to situations where managers have limited information about future events and alternatives, making it difficult to predict outcomes with a high degree of confidence. Unlike situations of certainty (where all relevant information is available) or risk (where probabilities can be calculated and estimated), uncertainty means that managers may not have a clear understanding of the risks associated with different courses of action. Ambiguity, on the other hand, refers to situations where the goals themselves are unclear or open to multiple interpretations, rather than a lack of information about future events.

Quiz 9: Managerial Decision Making

The condition under which ambiguity occurs is when:

Which of the following means that even though a manager may have clearly defined targets based on the available information,the future results associated with each alternative are subject to chance

Which of the following means that each and every piece of information is fully available to a decision maker

During the fallout of the global financial crisis of 2008,governments had to make important decisions in a highly ambiguous environment.The decision to buy out failed banks could best be described as what type of decision

Which of the following means that goals are not clear and the problems are not defined,and likewise the alternatives cannot be found and the outcomes are not visible

Under conditions of _____,statistical analyses of marketing data are often useful.

Associated with the condition of _____ is the lowest possibility of failure.

Which approach defines how a decision-maker should make decisions

A manager is expected to make decisions that are in the organization's best economic interests.The decisions would be based on which of the following

A company CEO decided to acquire a rival company.This is an example of a:

When a hospital decides to add a radiation therapy unit,it is considered a:

The classical model of decision making is based on _____ assumptions.

A product manager wants to increase the market share of a product,but does not know which factor in the marketing mix is most important to achieving this goal.The manager is operating under a condition of _____.

Which of these assumptions are included in the classical model of decision making

_____ are almost always associated with conflicts between managers over goals and decision alternatives,rapidly changing circumstances,fuzzy information and unclear links among decision elements.

_____ is by far the most difficult situation for a decision-maker.

At the start of every shift,a truck driver plans out a route based on the addresses that he will be visiting to drop off packages.This can best be described as what kind of decision

Which of the following has the highest possibility of failure

The four positions on the possibility of failure scale include certainty,risk,ambiguity and _____.

_____ means that managers might know the goals they want to achieve,but the information about alternatives and future events are incomplete.