Question 1

What is used to brainstorm alternative solutions in the Z model of problem solving?

Accepted Answer

In the Z model of problem solving, "intuiting" is used to brainstorm alternative solutions by exploring possibilities and generating creative ideas.

Question 2

You are ready to select your courses for your final year before graduation.All but two of your courses are electives.Which model will you most likely use for your selections?

Accepted Answer

The bounded rationality model is used when decision-makers have limitations on their information and time, which is typical in course selection where students must choose from a limited set of options based on their preferences and constraints.

Question 3

Cirque du Soleil has consistently made effective decisions,as reflected by its continued success. What is the best explanation for Cirque du Soleil's good decision making?

Accepted Answer

D

Question 4

According to the textbook,which of the following is an example of escalation of commitment?

Accepted Answer

Escalation of commitment refers to the phenomenon where people continue to invest in a decision despite evidence of its failure. British Airways and Air France's Concorde operations are a classic example, as both companies continued to invest in the Concorde project despite its financial losses.

Question 5

What is the final step in the Z model of problem solving?

Accepted Answer

The final step in the Z model of problem solving is to conduct an impact analysis to understand how the people involved will be affected by the decision.

Question 6

What is the final step in the decision-making process?

Accepted Answer

The final step in the decision-making process is to follow up, which involves monitoring and evaluating the results of the decision to ensure it achieves the desired outcome.

Question 7

Which of the following best summarizes heuristics,as found in the bounded rationality model?

Accepted Answer

Heuristics are mental shortcuts or rules of thumb that simplify decision making, often used when facing complex problems or incomplete information, as described in the bounded rationality model.

Question 8

Which statement best summarizes the bounded rationality model of problem solving and decision making?

Accepted Answer

Bounded rationality suggests that managers make decisions with limited information and resources, often settling for a satisfactory solution rather than an optimal one.

Question 9

Which response indicates a key principle of the normative decision model?

Accepted Answer

The normative decision model emphasizes using the most appropriate decision-making method based on the specific situation, focusing on the context and requirements of the decision.

Question 10

What does the decision maker strive to do in the rational model?

Accepted Answer

In the rational model, the decision maker aims to select the best possible alternative by thoroughly evaluating all options and their potential outcomes.

Question 11

What is the initial step in a problem-solving decision situation?

Accepted Answer

Problem recognition is the initial step in a problem-solving decision situation because it is the process of identifying and understanding the problem that needs to be solved.

Question 12

How can you effectively manage decisions in order to avoid escalation of commitment?

Accepted Answer

Having a group or team make initial investment decisions can help avoid personal biases and reduce the likelihood of escalation of commitment, as it distributes responsibility and encourages diverse perspectives.

Question 13

Which of the following is an example of a programmed decision situation?

Accepted Answer

Reordering raw materials from an established supplier is a routine, repetitive decision that follows a set procedure, making it a programmed decision.

Question 14

Which idea indicates an assumption that is based on the rational model of decision making?

Accepted Answer

The rational model of decision making assumes that decision makers can calculate the probability of success for each alternative, implying they have access to all necessary information and can evaluate it logically.

Question 15

Cara believes in her solution to the problem.At this point,500 hours and several thousand dollars have gone into implementing the solution,even though the business is still declining.What is most likely occurring?

Accepted Answer

Escalation of commitment occurs when someone continues to invest in a decision despite evidence of its failure, often due to the time and resources already committed.

Question 16

What are the characteristics of an effective decision?

Accepted Answer

An effective decision should be timely, acceptable, and meet the desired objective to ensure it is implemented successfully and achieves the intended results.

Question 17

Who first proposed the model of bounded rationality?

Accepted Answer

Herbert Simon first proposed the model of bounded rationality, which suggests that individuals make decisions within the constraints of limited information and cognitive limitations.

Question 18

What can result in firing people,exiting a business,or admitting wrong?

Accepted Answer

Making a decision can lead to actions such as firing people, exiting a business, or admitting wrong, as these are outcomes of decisions made in response to business challenges or strategic changes.

Question 19

What is a key principle of the bounded rationality model?

Accepted Answer

Satisficing is a key principle of the bounded rationality model, which suggests that individuals make decisions that are good enough rather than optimal.

Question 20

What best corresponds to the cognitive style in the first step of the Z model?

Accepted Answer

The answer of What best corresponds to the cognitive style...

Quiz 10: Decision Making by Individuals and Groups