Question 1

Intuition is independent of the programmed decision routines that speed up our response to pattern matches or mismatches.

Accepted Answer

Intuition also relies on action scripts -programmed decision routines that speed up our response to pattern matches or mismatches.

Question 2

When making important decisions,we "listen in" on our emotions to guide our preference among the decision alternatives.

Accepted Answer

Marketing experts have found that we listen in on our emotions to gain guidance when making choices. This process is similar to having a temporary improvement in emotional intelligence.

Question 3

Intuition allows us to draw on our tacit knowledge to guide our decision preferences.

Accepted Answer

Intuition involves rapidly comparing our observations with deeply held patterns learned through experience. These templates represent tacit knowledge that has been implicitly acquired over time.

Question 4

Preconceived mental models formed by our cognitive structure help us make better and accurate decisions.

Accepted Answer

Our cognitive structure frames information through preconceived mental models. This distorts the problem identification stage in decision making.

Question 5

Research suggests that decision makers do not evaluate several alternatives when they find an opportunity.

Accepted Answer

Research suggests that decision makers do not evaluate several alternatives when they find an opportunity; after all, the opportunity is the solution, so there is no need to look for others. An opportunity is usually experienced as an exciting and rare revelation, so decision makers tend to have an emotional attachment to the opportunity.

Question 6

Rational choice decision process recommends choosing the alternative with a moderate subjective expected utility.

Accepted Answer

The fourth step in the rational decision-making model is to select the choice with the highest subjective expected utility. This calls for all possible information about all possible alternatives and their outcomes, but the rational choice paradigm assumes it can be accomplished with ease.

Question 7

One of the reasons people use satisficing rather than maximization when making decisions is that it takes more information processing capacity than people possess or are willing to use to choose the best alternative.

Accepted Answer

One reason why people engage in satisficing rather than maximization is that choosing the best alternative demands more information processing capacity than people possess or are willing to apply.

Question 8

According to bounded rationality theory,people make the best decisions when their perceptions are "bounded" or framed by past experience.

Accepted Answer

Bounded rationality refers to the view that people are bounded in their decision making capabilities, including access to limited information, limited information processing, and tendency toward satisficing rather than maximizing when making choices. This makes them chose a satisfactory solution rather than the best solution.

Question 9

Nonprogrammed decisions require all steps in the decision model because the problems are new,complex,or ill-defined.

Accepted Answer

Nonprogrammed decisions require all steps in the decision model because the problems are new, complex, or ill-defined.

Question 10

The decision-making process is more effective when problems are defined in terms of their solutions.

Accepted Answer

Decision makers have a tendency to define problems as veiled solutions. This distorts effective decision making.

Question 11

The rational choice paradigm assumes that decision makers have limited information-processing capabilities and engage in a limited search for alternatives.

Accepted Answer

According to the bounded rationality view, people process limited and imperfect information and rarely select the best choice. This is inconsistent with the rational choice paradigm view. According to the rational choice paradigm of decision making, people rely on logic to evaluate and choose alternatives. This paradigm assumes that decision makers have well articulated and agreed-on organizational goals, efficiently and simultaneously process facts about all alternatives and the consequences of those alternatives, and choose the alternative with the highest payoff.

Question 12

One reason why the problem identification stage is imperfect is that various stakeholders try to frame the decision maker's view of the situation.

Accepted Answer

Stakeholders present the information to decision makers in such a way that it triggers the decision maker's emotional response that the information is a problem, an opportunity, or inconsequential. This makes the problem identification stage imperfect.

Question 13

Decision making is a nonconscious process of moving toward a desirable state of affairs.

Accepted Answer

Decision making is the conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs.

Question 14

Intuition is based on mental templates or models representing tacit knowledge about a situation.

Accepted Answer

Intuition involves mental templates that represent tacit knowledge that has been implicitly acquired over time. They are mental models that help us understand whether a current situation is good or bad.

Question 15

When in a positive mood,people pay more attention to details and follow a nonprogrammed decision routine.

Accepted Answer

When in a positive mood people pay less attention to details and rely on a more programmed decision routine.

Question 16

The emerging emotional view of decision making states that people form preferences toward alternatives as soon as they receive information about those alternatives.

Accepted Answer

People form preferences toward alternatives as soon as they receive information about those alternatives. It requires strong logical evidence to change the initial preferences.

Question 17

Decision makers have a need to reduce uncertainty,so they tend to engage in solution-focused problem identification.

Accepted Answer

Decision makers engage in solution-focused problem identification because it provides comforting closure to the otherwise ambiguous and uncertain nature of problems.

Question 18

Decision makers typically look at alternatives sequentially and compare each alternative with an implicit favorite.

Accepted Answer

Decision makers have a natural tendency to evaluate alternatives sequentially, rather than at the same time. This sequential evaluation occurs partly because all alternatives are not usually available to the decision maker at the same time. Consequently, as a new alternative comes along, it is immediately compared with an implicit favorite-an alternative that the decision maker prefers and that is used as a comparison with other choices.

Question 19

Subjective expected utility refers to how much the selected alternative benefits or satisfies the decision maker.

Accepted Answer

Subjective expected utility is the probability (expectation) of satisfaction (utility) for each alternative.

Question 20

The last step in the rational decision-making model is to evaluate the decision outcomes.

Accepted Answer

The final step in rational decision-making model is evaluating whether the gap has narrowed between "what is" and "what ought to be." Ideally this information should come from systematic benchmarks so that relevant feedback is objective and easily observed. This step evaluates the decision outcomes.

Quiz 7: Decision Making and Creativity