Question 1

Leon is an investment portfolio manager.While sitting in a training workshop,the facilitator mentioned that "your female investors make trades much less often than men because they ____."

Accepted Answer

According to LouAnn DiCosmo,"the basic reason female investors make trades much less often than men is that women do a lot more research,and tend to base their investment decisions on considerations other than just numbers."

Question 2

Jose,the sales manager,is working on the problem of increasing sales by using the rational model of decision making.In the first step he identified the problem of his employees needing more training.In the second step he thought of alternative solutions;and in step three he evaluated alternatives and selected a solution.In the fourth step,Jose needs to _____.

Accepted Answer

In the fourth step of the rational model of decision making,Jose needs to implement and evaluate the training program chosen.

Question 3

A data-mining technique used to predict future behavior and anticipate the consequences of change is known as ___.

Accepted Answer

Predictive modeling is a data-mining technique used to predict future behavior and anticipate the consequences of change.Companies such as Capital One look well beyond basic statistics,using data mining and predictive modeling to identify potential and most profitable customers.Thus,Capital One conducts more than 30,000 experiments a year,with different interest rates,incentives,direct-mail packaging,and other variables to evaluate which customers are most apt to sign up for credit cards and will pay back their debt.

Question 4

Susanne,the CEO of national IT manufacturer,was approached by Simple Phones,a new company that is marketing a new type of phone,to partner with the company on a project.The partnership is uncertain since the company and technology are new.Susanne is uncertain what to do because she is limited by numerous constraints,such as the uncertainty and complexity of the technology,the management success of Simple Phones,and time,since other companies are interested in the partnership.This is an example of _____.

Accepted Answer

The bounded rationality concept suggests that the ability of decision makers to be rational is limited by numerous constraints,such as complexity.The problems that need solving are often exceedingly complex,beyond understanding.

Question 5

Doug is using rational decision making,and the chosen alternative that was implemented does not appear to be working.To correct the situation,the possibilities Doug should consider _____.

Accepted Answer

Some possibilities to try using rational decision making if the action is not working include giving it more time,changing it slightly,trying another alternative,or starting over.

Question 6

With the community interested in eating healthy,Sue Ellen,a restaurant owner,is considering adding more vegetarian dishes to her menu.This decision is uncertain and risky,and she finally decides to goes with her gut feelings.This is an example of _______.

Accepted Answer

Nonrational models of decision making explain how managers make decisions;they assume that decision making is nearly always uncertain and risky,making it difficult for managers to make optimal decisions.

Question 7

Difficulties that inhibit the achievement of goals are known as _____.

Accepted Answer

Difficulties that inhibit the achievement of goals are known as problems.

Question 8

Style Mart uses time-series forecasts,such as past holiday sales and the strength of store sales this year to predict future sales based on patterns of historical data.This is an application of ___.

Accepted Answer

Analytics,or business analytics,is the term used for sophisticated forms of business data analysis.In one example of analytics in gambling,data-mining software was used to analyze vast amounts of casino customer data to target profitable patrons.

Question 9

The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints,such as complexity,time,cognitive capacity,values,skills,habits,and unconscious reflexes,is known as _____.

Accepted Answer

The bounded rationality concept suggests that the ability of decision makers to be rational is limited by numerous constraints,such as complexity,time,cognitive capacity,values,skills,habits,and unconscious reflexes (see Figure 7.2).Because of such constraints,managers don't make an exhaustive search for the best alternative.Instead,they follow the satisficing model in which managers seek alternatives until they find one that is satisfactory,not optimal.

Question 10

The rational model of decision making is also called the ____ model.

Accepted Answer

The rational model of decision making is also called the classical model.

Question 11

In the third step of rational decision making (evaluating alternatives and select a solution),you need to evaluate each alternative not only according to cost and quality but also according to the following questions: _____

Accepted Answer

In the third step of rational decision making (evaluating alternatives and selecting a solution),you need to evaluate each alternative not only according to cost and quality but also according to these questions: (1)Is it ethical? (2)Is it feasible? (3)Is it effective?

Question 12

Patricia is the owner of a floral shop.A successful global candle company approached her about selling its products in her shop.Patricia knows this product and company can help her exceed her existing goals.This defines a(n)____.

Accepted Answer

Opportunities are situations that present possibilities for exceeding existing goals.

Question 13

ABC Medical Technology,a fast-growing global research firm,has accumulated so much client information that conventional database management systems cannot handle its customer needs.Therefore,it purchased very sophisticated analysis software and supercomputing-level hardware.For the company's work with hospitals and university medical schools,ABC has been noted in publications as "real pioneers for innovation and productivity." This vast amount of data is known as ____.

Accepted Answer

Big Data refers to stores of data so vast that conventional database management systems cannot handle them and so very sophisticated analysis software and supercomputing-level hardware are required.Attracting a lot of attention in science,business,medicine,and technology,the concept of big data has been dubbed "the next frontier for innovation,competition,and productivity."

Question 14

The process of studying large amounts of data of a variety of types to uncover hidden patterns,unknown correlations,and other useful information is known as ____.

Accepted Answer

Big data analytics is the process of examining large amounts of data of a variety of types to uncover hidden patterns,unknown correlations,and other useful information.

Question 15

Despite your best intentions,it's hard to bring the best evidence to bear on your decisions because of such reasons as ____.

Accepted Answer

Despite your best intentions,it's hard to bring the best evidence to bear on your decisions.Reasons include (1)there's too much evidence, (2)there's not enough good evidence, (3)the evidence doesn't quite apply, (4)people are trying to mislead you, (5)you are trying to mislead you, (6)the side effects outweigh the cure,and (7)stories are more persuasive anyway.

Question 16

Sal has been in the landscaping business for over 40 years,and when Donovan,his business partner,suggested adding snow removal as an extra service,Sal responded with "My gut feeling is to say yes because of my experience in the past and what I have seen other companies do over the years,both successfully and not." Sal's response to Donovan is known as _____.

Accepted Answer

Intuition is making a choice without the use of conscious thought or logical inference.It may be based on expertise or feelings.

Question 17

Olivia,the owner of a small city newspaper,started her business two years ago,believing that there was still enough demand for her product.However,because people are busy and with the availability of news online,she has seen the demand for her paper drop steadily.Olivia made a decision to change the original direction of the company and focus more on an Internet news service.By demonstrating that managers need to think and act as if their company is an unfinished prototype,won't be ruined by new ideas and focusing on facts,Olivia is relying on _____.

Accepted Answer

Pfeffer and Sutton identify seven implementation principles for companies committed to doing what it takes to profit from evidence-based management,including treat your organization as an unfinished prototype.Leaders need to think and act as if their organization is an unfinished prototype that won't be ruined by dangerous new ideas or impossible to change because of employee or management resistance.

Question 18

The combination of how an individual perceives and responds to information reflects his or her ____.

Accepted Answer

Decision-making style reflects the combination of how an individual perceives and responds to information.A team of researchers developed a model of decision-making styles based on the idea that styles vary along two different dimensions: value orientation and tolerance for ambiguity.

Question 19

Paula,the controller of Tasty Pizza,is purchasing several new delivery vehicles.Paula has numerous work responsibilities,so she has limited time to shop for cars.Because of the time constraints,she cannot make an extensive search for the best alternative but instead needs to look for cars until she finds one that is satisfactory.Paula is following the _____ model.

Accepted Answer

Because of constraints (here,a time constraint),managers don't make an exhaustive search for the best alternative.Instead,they follow the satisficing model in which managers seek alternatives until they find one that is satisfactory,not optimal.

Question 20

Chad and his partner,John,have decided to update their computer network,although they have no expertise in this area.During a meeting with John,Chad commented that "Our decision is limited by numerous constraints,such as our understanding of the complexity of technology,time and money,imperfect information,and our conflicting goals." These limitations are hindrances to _____.

Accepted Answer

The ability of decision makers to be rational is limited by numerous constraints,such as complexity,time and money,imperfect or too much information,conflicting goals,and their cognitive capacity,values,skills,habits,and unconscious reflexes (see Figure 7.2).

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