Question 1

In the rational decision-making model, the phase that immediately follows "choosing among alternative solutions" is __________.
A) evaluating the selection
B) implementing the solution selected
C) analyzing the environment
D) follow-up and control

Accepted Answer

Implementing the solution selected is the phase that immediately follows choosing among alternative solutions in the rational decision-making model. After a decision is made, the next step is to put that decision into action.

Question 2

In phase 7 of the rational decision-making model, individuals and teams must __________ implementation activities and __________ by evaluating the results of the decision.
A) manage; act
B) follow up; control
C) control; follow up
D) explore; change

Accepted Answer

In phase 7 of the rational decision-making model, individuals and teams must control implementation activities and follow up by evaluating the results of the decision. This ensures that the decision is effectively implemented and any necessary adjustments are made based on the outcomes.

Question 3

Which of the following is not an individual tendency in the bounded rationality model of decision making?
A) engage in an extended search for alternative solutions
B) select less than the best goal
C) select less than the best alternative solution
D) have inadequate information and control over environmental forces

Accepted Answer

The bounded rationality model of decision making acknowledges that individuals cannot process all available information and thus often make satisfactory rather than optimal decisions. Engaging in an extended search for alternative solutions contradicts this model, as individuals are assumed to work within their cognitive limits and may not seek out all possible options extensively.

Question 4

Ali and Ana Hakeem are on vacation in New York City. They would like to go to a good Italian restaurant for lunch. There are at least 200 Italian restaurants in Little Italy. Ali and Ana will probably use the __________ model of decision making to select a restaurant.
A) bounded rationality
B) decision tree
C) rational
D) probability

Accepted Answer

Given the large number of options (over 200 Italian restaurants) and the practical constraints of time and information, Ali and Ana are likely to use the bounded rationality model. This model suggests that people make decisions based on a limited amount of information and within the constraints of their environment, rather than attempting to consider all possible options and outcomes comprehensively.

Question 5

The bounded rationality model of decision making is particularly useful because it emphasizes the __________, thus providing a more accurate picture of the day-to-day decision- making processes used by most people.
A) rational steps in decision making
B) limitations of rationality in decision making
C) uncertainty of decision making
D) goal setting nature of decision making

Accepted Answer

The bounded rationality model of decision making highlights the limitations of rationality in decision making, acknowledging that individuals work under constraints of information, time, and cognitive capacity, which makes it a more realistic representation of how decisions are made in everyday situations.

Question 6

A person who easily recalls specific instances of an event may overestimate how frequently the event occurs. This is an example of __________ bias.
A) law of large numbers
B) memorization
C) gambler's fallacy
D) availability

Accepted Answer

This is an example of availability bias, where people judge the frequency or probability of events based on how easily examples come to mind.

Question 7

Atul Jain was in a serious car accident last year. The National Safety Transportation Board says that one half of one percent of all drivers will be in car accidents each year. However, Jain thinks that the actual frequency is 5 percent. He has most likely fallen prey to the ___________ bias.
A) belief
B) concrete information
C) critical thinking
D) availability

Accepted Answer

Jain is likely influenced by the availability bias, which occurs when individuals overestimate the likelihood of events based on their own experiences or information that is readily available to them. In this case, his recent car accident makes him believe that such accidents are more common than they actually are.

Question 8

The idea that what people expect to see often is what they do see is an example of the __________ bias.
A) availability
B) limitation
C) selective perception
D) certainty

Accepted Answer

The idea that people often see what they expect to see is an example of selective perception bias. This bias describes the tendency to perceive information in a way that is consistent with one's existing beliefs, expectations, or hypotheses, while ignoring contradictory information.

Question 9

__________ bias means that vivid, direct experience usually prevails over abstract information.
A) Availability
B) Concrete information
C) Personal experience
D) Law of experiences

Accepted Answer

The answer of __________ bias means that vivid, direct experience...

Question 10

Erika Bhately works for a large toy manufacturing company. Her first supervisor, Amanda Carter, was unfair, unsupportive, and often used Bhately's ideas without giving her credit. Bhately's current supervisor, Erin Phillips, is supportive and friendly, but Bhately is unwilling to trust Phillips. Bhately appears to be applying the _________ bias.
A) concrete information
B) abstract information
C) intrasender role
D) law of experience

Accepted Answer

The answer of Erika Bhately works for a large toy...

Question 11

When a few incidents or cases are viewed as representative of a larger population, even when they aren't, the law of _________ bias exists.
A) population concentration
B) small numbers
C) large numbers
D) incidents

Accepted Answer

The law of small numbers bias refers to the cognitive bias that leads people to draw broad conclusions from small sets of data or a few incidents, mistakenly believing them to be representative of the larger population.

Question 12

The __________ bias occurs when an unexpected number of similar events leads to the conviction that an event not seen will occur.
A) probability
B) law of association
C) gambler's fallacy
D) law of expected outcomes

Accepted Answer

The gambler's fallacy is the bias that occurs when an individual believes that a departure from what occurs on average or in the long term will be corrected in the short term. For example, if a coin lands on heads several times in a row, someone might believe tails is "due" to occur, even though each flip is independent.

Question 13

Greg Pearce has seen his favorite college football team unexpectedly lose six games in a row, but he is convinced that his team will win this coming weekend. Pearce is guilty of the __________ bias.
A) probability
B) gambler's fallacy
C) law of expected outcomes
D) law of association

Accepted Answer

Greg Pearce's belief that his team is due for a win after a losing streak is an example of the gambler's fallacy, which is the incorrect belief that a series of the same outcome (in this case, losses) will increase the chances of a different outcome (a win) in the next event.

Question 14

In the bounded rationality model, individuals stop searching for alternatives as soon as they __________.
A) get tired of searching
B) find the best one
C) find an acceptable one
D) have explored the maximum alternatives

Accepted Answer

In the bounded rationality model, individuals stop searching for alternatives when they find an option that meets their minimum criteria for acceptability, rather than continuing to search for the best possible option. This approach acknowledges the limitations of human decision-making processes, including time constraints and limited information.

Question 15

Satisficing is __________.
A) the inability to select an acceptable goal or alternative solution
B) the practice of selecting an acceptable goal or alternative solution
C) the unwillingness to select an acceptable goal or alternative solution
D) applying decision making to routine decisions

Accepted Answer

Satisficing is the practice of selecting an acceptable goal or alternative solution, rather than seeking the optimal solution, especially when dealing with complex problems or under conditions of uncertainty.

Question 16

The level of satisficing can be raised by all of the following except __________.
A) using computer-based decision-making techniques
B) setting higher individual standards
C) setting lower organizational expectations
D) personal determination

Accepted Answer

Satisficing is a decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution. Raising the level of satisficing involves aiming for higher standards or better outcomes. Using computer-based decision-making techniques (A), setting higher individual standards (B), and personal determination (D) can all contribute to improving decision outcomes or striving for higher goals. Setting lower organizational expectations (C), on the other hand, would lower the bar for satisficing, making it easier to achieve a satisfactory outcome without necessarily improving the decision-making process or outcomes.

Question 17

Which of the following is not one of the factors that influence a satisficing decision?
A) limited search for alternatives
B) inadequate problem definition
C) limited information
D) a certain environment

Accepted Answer

A satisficing decision is made under conditions of bounded rationality, where decision-makers settle for a satisfactory solution rather than an optimal one. This often involves limited search for alternatives, inadequate problem definition, and limited information due to constraints such as time, cognitive capacity, or availability of information. A certain environment, on the other hand, implies that outcomes are predictable and fully known, which does not typically limit or influence the satisficing decision process as the other factors do.

Question 18

In an interview on the bounded rationality model, Herbert Simon identifies assumptions that lead to satisficing which include all of the following except __________.
A) limited set of alternatives
B) tendency to select lowest cost
C) difficulty in locating alternatives
D) difficulty in evaluating alternatives

Accepted Answer

Herbert Simon's concept of bounded rationality and satisficing involves the idea that individuals make decisions based on a limited set of alternatives and have difficulties in locating and evaluating these alternatives due to cognitive limitations and time constraints. The tendency to select the lowest cost is not specifically identified as a factor leading to satisficing in Simon's model; rather, the focus is on selecting an option that meets a satisfactory threshold, not necessarily the lowest cost option.

Question 19

Andrea Sherman is graduating from Michigan State University in May. She wants to find a job as an elementary school teacher. It would be extremely time consuming and costly for her to evaluate every teaching job available. Most likely, Sherman will use ________.
A) bounded rationality in making a choice
B) the constrained decision-making model
C) the rational decision-making model
D) a routine decision making framework

Accepted Answer

Bounded rationality suggests that individuals make decisions based on a limited amount of information and within the constraints of their environment, which is likely how Andrea Sherman will approach her job search due to the impracticality of evaluating every available teaching position.

Question 20

The __________ decision-making model is described in terms of the self-interests and goals of powerful internal and external stakeholders.
A) co-optation
B) political
C) governance
D) gambler's fallacy

Accepted Answer

The political decision-making model focuses on the influence of powerful internal and external stakeholders, considering their self-interests and goals in the decision-making process.

Quiz 8: Fundamentals of Decision Making

In the rational decision-making model, the phase that immediately follows "choosing among alternative solutions" is __________.

In phase 7 of the rational decision-making model, individuals and teams must implementation activities and by evaluating the results of the decision.

Which of the following is not an individual tendency in the bounded rationality model of decision making?

Ali and Ana Hakeem are on vacation in New York City. They would like to go to a good Italian restaurant for lunch. There are at least 200 Italian restaurants in Little Italy. Ali and Ana will probably use the __________ model of decision making to select a restaurant.

The bounded rationality model of decision making is particularly useful because it emphasizes the __________, thus providing a more accurate picture of the day-to-day decision- making processes used by most people.

A person who easily recalls specific instances of an event may overestimate how frequently the event occurs. This is an example of __________ bias.

Atul Jain was in a serious car accident last year. The National Safety Transportation Board says that one half of one percent of all drivers will be in car accidents each year. However, Jain thinks that the actual frequency is 5 percent. He has most likely fallen prey to the ___________ bias.

The idea that what people expect to see often is what they do see is an example of the __________ bias.

__________ bias means that vivid, direct experience usually prevails over abstract information.

When a few incidents or cases are viewed as representative of a larger population, even when they aren't, the law of _________ bias exists.

The __________ bias occurs when an unexpected number of similar events leads to the conviction that an event not seen will occur.

Greg Pearce has seen his favorite college football team unexpectedly lose six games in a row, but he is convinced that his team will win this coming weekend. Pearce is guilty of the __________ bias.

In the bounded rationality model, individuals stop searching for alternatives as soon as they __________.

Satisficing is __________.

The level of satisficing can be raised by all of the following except __________.

Which of the following is not one of the factors that influence a satisficing decision?

In an interview on the bounded rationality model, Herbert Simon identifies assumptions that lead to satisficing which include all of the following except __________.

Andrea Sherman is graduating from Michigan State University in May. She wants to find a job as an elementary school teacher. It would be extremely time consuming and costly for her to evaluate every teaching job available. Most likely, Sherman will use ________.

The __________ decision-making model is described in terms of the self-interests and goals of powerful internal and external stakeholders.