Question 1

The decision- making process concludes with
A)evaluation of decision effectiveness.
B)identification of a problem.
C)analysis of alternatives.
D)identification of decision criteria.

Accepted Answer

The decision-making process concludes with the evaluation of decision effectiveness, which involves assessing the outcomes of the decision to ensure that the objectives have been achieved and to learn from the decision-making process for future decisions.

Question 2

In the decision- making process known as bounded rationality,
A)the final choice minimizes economic payoff.
B)all "good enough" choices are selected.
C)the first choice that is "good enough" is chosen.
D)the final choice maximizes economic payoff.

Accepted Answer

Bounded rationality suggests that individuals make decisions by finding an option that is satisfactory or "good enough," rather than by exhaustively searching through all possible options to find the best one. This approach acknowledges the limitations of human cognitive abilities and the constraints of available information and time.

Question 3

_________requires managers to select the best alternative from multiple criteria or alternative solutions.
A)Optimizing
B)Satisfying
C)Programmed decision- making
D)Bounded rationality

Accepted Answer

Optimizing involves choosing the best possible solution from a set of alternatives based on specific criteria, ensuring the most effective outcome.

Question 4

Lon authorizes an additional $100,000 for the production of the new product. The cost of the new product seems to be increasing far beyond what was planned or even forecast. However, Lon continues to support the project. Lon is engaging in
A)representative heuristic.
B)optimal decision making.
C)escalation of commitment.
D)availability heuristic.

Accepted Answer

Lon is demonstrating escalation of commitment by continuing to invest in the project despite its increasing costs, showing a commitment to a decision in the face of negative outcomes.

Question 5

_________is one of the disadvantages of group decisions that typically results in groups that are very cohesive.
A)Conflict
B)Compromise
C)Domination
D)Groupthink

Accepted Answer

Groupthink is a phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. It is particularly common in very cohesive groups, where the pressure to agree and maintain unity can suppress dissenting viewpoints and lead to poor decisions.

Question 6

Application of Decision Making: A Contingency Approach
It seems that all Dave accomplishes is making decisions. Every time he turns around, someone wants him to decide on one more thing. Just today the secretary came in and asked if she could reorder paper for the fax machine. Somehow that seemed like a decision he really did not need to deal with. If he could avoid those types of decisions, then when the foreman came in with the news of a major piece of equipment that needs repair, in which the repair bill will be almost as much as a new machine, Dave could focus more time and attention on the more complicated issues.
-The problem of whether to repair the piece of equipment or to purchase a new machine is an example of a(n)_________problem.
A)ill- structured
B)well- structured
C)programmed
D)nonprogrammed

Accepted Answer

The problem of whether to repair the equipment or purchase a new machine is an ill-structured problem because it involves complex decision-making without a clear, straightforward solution.

Question 7

"Whenever possible, we promote from within" is an example of which of the following?
A)nonprogrammed decision
B)procedure
C)policy
D)rule

Accepted Answer

This statement is an example of a policy, as it outlines a general guideline or course of action that the organization intends to follow, in this case regarding promotions.

Question 8

Which of the following is the most effective number of people to have in a group?
A)3- 7
B)3- 12
C)5- 7
D)2- 10

Accepted Answer

The answer of Which of the following is the most...

Question 9

In general, the greater the risk in making a decision, the greater the
A)information available.
B)rewards.
C)outcomes.
D)uncertainty.

Accepted Answer

The greater the risk in making a decision, the greater the uncertainty.

Question 10

After all factors have been determined, weights have been assigned, and alternatives have been identified, the next step in decision making is to
A)identify the problem.
B)analyze the alternatives.
C)identify the decision criteria.
D)implement the alternative.

Accepted Answer

Once alternatives have been identified and evaluated, the next step is to implement the chosen alternative.

Question 11

Application of the Decision- Making Process
Net income has fallen for the second quarter, and Amanda is understandably worried. She knows at the board of directors meeting on Wednesday she will be closely questioned and expected to have a plan to avoid any third- quarter losses.
Amanda begins to read slowly over the financial documents to try and ascertain areas that may be the cause. After much consideration, it appears that expenses have risen dramatically over the last few months. Amanda wonders why. She decides a meeting of the department heads is in order first thing tomorrow morning. At the meeting, Amanda would like to generate several possible solutions to the increased expenses. She wonders how to effectively explore all the options. At the meeting, the first option that is discussed is to downsize the research and development department since it is not essential to current operations. Several managers approve this plan. Amanda suggests that they need to look further at the issue. Several suggestions are made, many of which appear to be viable. Amanda wonders what to do next.
-What is the first step in the decision- making process facing Amanda?
A)Assignment of weights to the decision criteria.
B)Identification of the decision criteria.
C)Identification of the real problem.
D)Selection of an alternative that will solve the problem.

Accepted Answer

Amanda's first step is identifying the real problem behind the net income fall, which she starts by analyzing financial documents to ascertain areas causing increased expenses.

Question 12

Application of the Decision- Making Process
Net income has fallen for the second quarter, and Amanda is understandably worried. She knows at the board of directors meeting on Wednesday she will be closely questioned and expected to have a plan to avoid any third- quarter losses.
Amanda begins to read slowly over the financial documents to try and ascertain areas that may be the cause. After much consideration, it appears that expenses have risen dramatically over the last few months. Amanda wonders why. She decides a meeting of the department heads is in order first thing tomorrow morning. At the meeting, Amanda would like to generate several possible solutions to the increased expenses. She wonders how to effectively explore all the options. At the meeting, the first option that is discussed is to downsize the research and development department since it is not essential to current operations. Several managers approve this plan. Amanda suggests that they need to look further at the issue. Several suggestions are made, many of which appear to be viable. Amanda wonders what to do next.
-Once alternatives have been identified, the decision maker must critically analyze the _________ and of each one, which become evident as they are compared with the criteria and weights established in steps 2 and 3.
A)costs; effects
B)strengths; weaknesses
C)images; profits
D)potentials; costs

Accepted Answer

Amanda needs to critically analyze the strengths and weaknesses of each alternative to determine the best course of action, as these will become evident when compared with the criteria and weights established in the decision-making process.

Question 13

Application of Decision- Making Styles
Jeremy has noticed that the people within his organization make decisions in very different ways. Jackie is rational and has a low tolerance for ambiguity. She is efficient and generally makes decisions that are applicable to the short term. Andy tends to be very broad in his outlook and looks at many alternatives before making a decision. He generally focuses on the long term. Alexandra thinks intuitively and works well with others. She is open to suggestions and concerned about her coworkers. Jeremy himself wants to have complete information before making a decision and always carefully considers many alternatives.
-Every decision maker in Jeremy's organization brings a unique set of_________ to his or her problem solving efforts.
A)preconceived notions
B)experiences
C)personal characteristics
D)brain patterns

Accepted Answer

The correct answer is C) personal characteristics. Each individual described exhibits unique decision-making styles that are influenced by their personal characteristics, such as tolerance for ambiguity, focus on short-term vs. long-term outcomes, intuition, and desire for complete information.

Question 14

_________is the aspect of decision making that is based on such facts as costs, revenues, and product design specifications.
A)Optimizing
B)Satisficing
C)Decision quality
D)Escalation of commitment

Accepted Answer

Decision quality involves making decisions based on objective facts such as costs, revenues, and product design specifications to ensure the best possible outcome.

Question 15

_________is when a manager evaluates alternatives until she comes to one that meets some minimum standard of sufficiency, selects it, and then goes on to other problems without considering the remaining rational alternatives.
A)Optimizing
B)Satisficing
C)Rational decision- making
D)Bounded Rationality

Accepted Answer

Satisficing is the process where a decision-maker evaluates options until finding one that meets a minimum standard of sufficiency, without necessarily considering all possible options or seeking the optimal solution. This approach is often used in situations where it is impractical or impossible to examine every alternative due to time constraints, cognitive limitations, or lack of information.

Question 16

A variation of the electronic meeting that links together media from different locations is
A)e- conference.
B)video conference.
C)the Delphi technique.
D)e- commerce.

Accepted Answer

Video conference is the correct answer because it specifically refers to a meeting format that uses video technology to connect participants from different locations, allowing them to see and hear each other in real-time.

Question 17

Which of the following is an advantage of group decision- making when compared to individual decision- making?
A)Groupthink may occur.
B)The group process takes less time.
C)One person can dominate the group.
D)More decision alternatives are generated.

Accepted Answer

Group decision-making often leads to the generation of more decision alternatives because it combines the knowledge, skills, and perspectives of multiple individuals, leading to a wider range of solutions and ideas.

Question 18

Managers often seek solutions that are satisfactory and sufficient. This is known as which of the following?
A)optimal decision making
B)satisfactory decision making
C)risk
D)satisficing

Accepted Answer

This approach is known as "satisficing," a term that combines "satisfy" and "suffice." It describes a decision-making strategy where managers look for solutions that are good enough rather than optimal, due to constraints like limited time and information.

Question 19

Joe, the manager of Internet Made Easy, is concerned. He is trying, like all technological based companies, to stay ahead of the competition by being the first to offer the new services available on the Internet. His business offers training to local businesses, and so he must offer the latest available information; however, he must also advertise the classes and the content, which means going to the publisher with that information six weeks before a class is to begin. What should his next series of classes offer? Joe is operating under which of the following conditions?
A)risk
B)optimal decision making
C)uncertainty
D)certainty

Accepted Answer

Joe is operating under uncertainty because he needs to predict future trends and services that will be relevant and in demand, without having complete information about what those will be at the time he needs to commit to advertising his classes.

Question 20

_________use(s)software programs to encode the relevant experience of an expert and allow a system to act like that expert in analyzing and solving ill structured problems.
A)Networks
B)Expert systems
C)Microsoft
D)Stand alones

Accepted Answer

Expert systems use software programs to encode the expertise of human experts, allowing the system to mimic the decision-making abilities of those experts in solving complex or ill-structured problems.

Quiz 4: Foundations of Decision Making

The decision- making process concludes with

In the decision- making process known as bounded rationality,

_________requires managers to select the best alternative from multiple criteria or alternative solutions.

Lon authorizes an additional $100,000 for the production of the new product. The cost of the new product seems to be increasing far beyond what was planned or even forecast. However, Lon continues to support the project. Lon is engaging in

_________is one of the disadvantages of group decisions that typically results in groups that are very cohesive.

"Whenever possible, we promote from within" is an example of which of the following?

Which of the following is the most effective number of people to have in a group?

In general, the greater the risk in making a decision, the greater the

After all factors have been determined, weights have been assigned, and alternatives have been identified, the next step in decision making is to

_________is the aspect of decision making that is based on such facts as costs, revenues, and product design specifications.

_________is when a manager evaluates alternatives until she comes to one that meets some minimum standard of sufficiency, selects it, and then goes on to other problems without considering the remaining rational alternatives.

A variation of the electronic meeting that links together media from different locations is

Which of the following is an advantage of group decision- making when compared to individual decision- making?

Managers often seek solutions that are satisfactory and sufficient. This is known as which of the following?

_________use(s) software programs to encode the relevant experience of an expert and allow a system to act like that expert in analyzing and solving ill structured problems.