Quiz 7: Individual and Group Decision Making: How Managers Make Things Happen

Business

False Explanation: When confronted with a choice,decision makers with strong prior beliefs tend to make their decisions based on their beliefs,even if evidence shows those beliefs are wrong.This is known as the prior-hypothesis bias.Although it's always more comforting to look for evidence to support your prior beliefs,you need to be tough-minded and weigh the evidence.

False Explanation: Is there enough data on which to make a decision? The unrepresentative sample bias recommendation is that you need to be attuned to the importance of sample size.Example: If all the secretaries in your office say they prefer dairy creamer to real cream in their coffee,is that enough data on which to launch an ad campaign trumpeting the superiority of dairy creamer? It might if you polled 3,000 secretaries,but 3 or even 30 is too small a sample.

True Explanation: Decision making is the process of identifying and choosing alternative courses of action.