Question 1

EMO LaCrosse, Inc.
EMO LaCrosse is a small but successful lacrosse equipment company in Maryland. Given the emerging globalization trend, Jared, CEO of the company, is considering the company's first international assembly plant in Honduras. Since there is little or no reliable factual information available from Honduras, Jared is wondering whether he should involve his staff in making the decision.
-Refer to EMO LaCrosse, Inc. If Jared wants to avoid the problem of dispersed accountability he should proceed with a _________________ decision making approach.

Accepted Answer

Group-aided decision making involves the leader making the final decision but only after receiving input from the group. This approach helps in gathering diverse perspectives while still maintaining clear accountability, as the final decision rests with the leader.

Question 2

BargainStock.com
Based on incomplete but reliable factual information, Maggie has decided to open BargainStock.com, an online stock trading company. Relying on her past experience and judgment, Maggie estimates a very high probability of success. Maggie feels that online stock trading, especially short-term day trading, will be lucrative for her business because when people are making money trading they want to make even more and when they are losing they keep "throwing good money after bad" to recoup.
-Refer to BargainStock.com. Maggie is facing a condition of

Accepted Answer

Maggie is facing a condition of risk because she is making decisions based on incomplete but reliable information and her own judgment, indicating that she is aware of the potential for both positive and negative outcomes.

Question 3

BargainStock.com
Based on incomplete but reliable factual information, Maggie has decided to open BargainStock.com, an online stock trading company. Relying on her past experience and judgment, Maggie estimates a very high probability of success. Maggie feels that online stock trading, especially short-term day trading, will be lucrative for her business because when people are making money trading they want to make even more and when they are losing they keep "throwing good money after bad" to recoup.
-Refer to BargainStock.com. Maggie can be described as predominantly relying on a(an) _________ style for processing information.

Accepted Answer

Maggie is relying on her past experience and judgment to estimate the success of her business, which is a characteristic of intuitive thinking style. She is not basing her decision on a logical or analytical process (thinking style), creative inspiration (creative style), a step-by-step process (linear style), or breaking down information into smaller parts (modular style).

Question 4

BargainStock.com
Based on incomplete but reliable factual information, Maggie has decided to open BargainStock.com, an online stock trading company. Relying on her past experience and judgment, Maggie estimates a very high probability of success. Maggie feels that online stock trading, especially short-term day trading, will be lucrative for her business because when people are making money trading they want to make even more and when they are losing they keep "throwing good money after bad" to recoup.
-Refer to BargainStock.com. If you decide to trade with BargainStock.com, because of its name, which decision trap is in force?

Accepted Answer

Choosing BargainStock.com based on its name involves a framing error because the decision is influenced by how the information is presented (the name suggests bargains) rather than by an objective analysis of the company's value or service quality.

Question 5

When the situation in which a problem occurs is changed so that the problem no longer exists, it is

Accepted Answer

When a situation is changed in such a way that a problem no longer exists, the problem is said to be dissolved. This means the circumstances that led to the problem have been altered, eliminating the problem without necessarily solving it in the traditional sense.

Question 6

Give a real-life example of a nonprogrammed decision. Why does it qualify as a nonprogrammed decision? Describe two or three methods you might use to generate alternative solutions to a problem or nonprogrammed decision.

Accepted Answer

The answer of Give a real-life example of a nonprogrammed...

Question 7

EMO LaCrosse, Inc.
EMO LaCrosse is a small but successful lacrosse equipment company in Maryland. Given the emerging globalization trend, Jared, CEO of the company, is considering the company's first international assembly plant in Honduras. Since there is little or no reliable factual information available from Honduras, Jared is wondering whether he should involve his staff in making the decision.
-Refer to EMO LaCrosse, Inc.. Jared is operating under a condition of ____ when considering the international expansion.

Accepted Answer

Jared is facing a lack of reliable information about the conditions in Honduras, indicating that he is facing uncertainty rather than certainty or risk. Intuitive judgment and programmed decisions are not relevant in this context. As a result, involving his staff in the decision-making process may help him gain more information and insights, enabling him to make a more informed choice about the international expansion of the company.

Question 8

What is a condition of "risk" and how can today's managers deal with it?

Accepted Answer

The answer of What is a condition of "risk" and...

Question 9

EMO LaCrosse, Inc.
EMO LaCrosse is a small but successful lacrosse equipment company in Maryland. Given the emerging globalization trend, Jared, CEO of the company, is considering the company's first international assembly plant in Honduras. Since there is little or no reliable factual information available from Honduras, Jared is wondering whether he should involve his staff in making the decision.
-Refer to Tick-Tock, Inc. Jared should know that ____ is(are) not among the advantages of group-aided decision making.

Accepted Answer

The term "logrolling" refers to the process of trading favors or support within a group, often resulting in an outcome that may not be the best decision for the organization. As such, it is not an advantage of group-aided decision making. The other options (A, B, C, and E) are all potential advantages of involving staff in the decision-making process.

Question 10

Which step in the four-step problem-solving process is the most common difficulty in managerial problem solving?

Accepted Answer

The answer of Which step in the four-step problem-solving process...

Question 11

"Satisfice" means ____ relative to selecting a solution to a problem.

Accepted Answer

"Satisfice" means to settle for a solution that is good enough, rather than trying to find the best possible solution. It may not necessarily involve considering cost-benefit or making the most people happy, but rather finding a solution that meets the basic requirements and constraints of the problem.

Question 12

____ is not a technique used to stimulate individual and group creativity.

Accepted Answer

Broadcasting is the act of communicating information to a large audience, it is not a technique used for stimulating individual or group creativity. The other options listed are all techniques typically used for this purpose.

Question 13

How would you answer a manager who made the following statement: "Groups always make better decisions than individuals acting alone."

Accepted Answer

The answer of How would you answer a manager who...

Question 14

One of the eight sources of decision complexity today is "pooled decision making." What does that mean for today's managers?

Accepted Answer

The answer of One of the eight sources of decision...

Question 15

Compare and contrast intuition and thinking styles of information processing and decision making. Identify and briefly describe at least three ways to sharpen your intuition.

Accepted Answer

The answer of Compare and contrast intuition and thinking styles...

Question 16

_______ is(are) the true test of any solution.

Accepted Answer

Time is the true test of any solution because it reveals the long-term effectiveness and sustainability of that solution.

Question 17

BargainStock.com
Based on incomplete but reliable factual information, Maggie has decided to open BargainStock.com, an online stock trading company. Relying on her past experience and judgment, Maggie estimates a very high probability of success. Maggie feels that online stock trading, especially short-term day trading, will be lucrative for her business because when people are making money trading they want to make even more and when they are losing they keep "throwing good money after bad" to recoup.
-Refer to BargainStock.com. When Maggie estimates a very high probability of success, this refers to a(n) ____ probability.

Accepted Answer

Maggie's estimation of a high probability of success is based on her past experience and judgment, which are subjective factors. Therefore, the probability is subjective.

Question 18

EMO LaCrosse, Inc.
EMO LaCrosse is a small but successful lacrosse equipment company in Maryland. Given the emerging globalization trend, Jared, CEO of the company, is considering the company's first international assembly plant in Honduras. Since there is little or no reliable factual information available from Honduras, Jared is wondering whether he should involve his staff in making the decision.
-Refer to EMO LaCrosse, Inc. Jared is facing what type of decision with international expansion?

Accepted Answer

Jared is facing a nonprogrammed decision as it is a new and complex decision related to expanding the company internationally, and there is little reliable factual information available from Honduras. This decision requires creativity, judgment, and evaluation of alternatives, which are the characteristics of a nonprogrammed decision. Involving his staff in making the decision can bring different perspectives and expertise to the decision-making process, which might help Jared make a better decision.

Question 19

BargainStock.com
Based on incomplete but reliable factual information, Maggie has decided to open BargainStock.com, an online stock trading company. Relying on her past experience and judgment, Maggie estimates a very high probability of success. Maggie feels that online stock trading, especially short-term day trading, will be lucrative for her business because when people are making money trading they want to make even more and when they are losing they keep "throwing good money after bad" to recoup.
-Refer to BargainStock.com. "Throwing good money after bad" describes the ____ decision trap among stock traders.

Accepted Answer

"Throwing good money after bad" is a classic example of escalation of commitment, where individuals continue to invest time, money or effort in a losing proposition in the hope that they will turn it around and recoup their initial losses.

Question 20

EMO LaCrosse, Inc.
EMO LaCrosse is a small but successful lacrosse equipment company in Maryland. Given the emerging globalization trend, Jared, CEO of the company, is considering the company's first international assembly plant in Honduras. Since there is little or no reliable factual information available from Honduras, Jared is wondering whether he should involve his staff in making the decision.
-Refer to EMO LaCrosse, Inc., Inc. According to the general decision-making model, which of these should be the first step for Jared?

Accepted Answer

According to the general decision-making model, the first step should be to scan the environment, which involves gathering relevant information about external factors that may affect the decision. In this case, since Jared has little or no factual information about Honduras, he should conduct an environmental scan to gather information about the political, economic, social, and technological factors that could impact the decision to establish an assembly plant in Honduras. Once an environmental scan is completed, Jared can move on to other steps in the decision-making process.

Quiz 8: Decision Making and Creative Problem Solving