Question 1

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

Accepted Answer

The rational model of decision making is also known as the classical model. This model assumes that decision makers have complete information, can evaluate all alternatives, and choose the option that maximizes utility or satisfies their goals.

Question 2

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.Style Mart is using

Accepted Answer

Style Mart is using analytics, which refers to the use of statistical and quantitative methods to generate insights from data. Time-series forecasting is a common technique used in analytics to predict future values based on past patterns. The other options (synergy trend, decisions by trends, focused trend, and Big Data) do not accurately describe the approach being used by Style Mart.

Question 3

______ is a data-mining technique used to predict future behavior and anticipate the consequences of change.

Accepted Answer

Predictive modeling is a technique that uses statistical algorithms and machine learning algorithms to analyze current and historical data to make predictions about future events or behaviors. It is used to anticipate the consequences of change and assists in decision-making by identifying patterns and relationships in the data. Hence, predictive modeling helps organizations to make informed decisions and take proactive actions.

Question 4

Susanne,the CEO of a 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 results of the partnership are uncertain because the company (Simple Phones)and its 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 (because other companies are interested in the partnership).Susanne is experiencing

Accepted Answer

Susanne is experiencing bounded rationality, which refers to the limitations of our cognitive abilities and available information when making decisions. She is constrained by uncertainty and complexity of the technology, the management success of Simple Phones, and time pressure from other interested companies. Therefore, she may not be able to consider all possible options and alternatives, leading to a limited set of choices. As a result, it is best for Susanne to carefully consider the available information, consult with experts, and weigh the risks and benefits of partnering with Simple Phones before making a decision.

Question 5

Despite your best intentions,it's hard to bring the best evidence to bear on your decisions.Why?

Accepted Answer

There may be too much evidence available, but it may not all be good evidence. Additionally, even if the evidence is good, there may be side effects to consider that outweigh the benefits of using the evidence in decision-making. Therefore, it can be difficult to bring the best evidence to bear on decisions.

Question 6

Which of the following is an example of the "curse of knowledge"?

Accepted Answer

The "curse of knowledge" refers to the difficulty of imagining what it's like not to know something that you do know. In this case, the writer's large vocabulary makes it difficult for them to remember that most readers do not have the same level of knowledge and may struggle to understand the novel.

Question 7

Sal has been in the landscaping business for over 40 years.When Jaime,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 is acting on _____ in his response to Jaime.

Accepted Answer

Sal's response of relying on his past experience and what he has observed over the years indicates that he is acting on his intuition.

Question 8

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.Selling candles is a(n)_____ for Patricia.

Accepted Answer

An opportunity is a favorable circumstance that can lead to success or advancement. In this case, Patricia sees the potential for increased success by selling the global candle company's products in her shop.

Question 9

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 go with her gut feelings.Sue Ellen is exhibiting

Accepted Answer

Sue Ellen is making a decision based on her personal feelings and emotions, rather than a rational analysis of data or specific decision-making guidelines. This is an example of nonrational decision making.

Question 10

Which of the following is not a hindrance to perfectly rational decision making?

Accepted Answer

Intuition is not a hindrance to perfectly rational decision making because it can sometimes lead to quick and accurate decisions based on past experience and knowledge. However, it should be used in conjunction with rational decision making processes to ensure the best outcome.

Question 11

_____ are difficulties that inhibit the achievement of goals.For example,the lack of parking may be the main reason why a new restaurant is failing.

Accepted Answer

Problems are difficulties that inhibit the achievement of goals, as stated in the question prompt. Objectives refer to the goals themselves, synergies refer to the combination of efforts for maximum effect, values refer to beliefs or principles that guide behavior, and alternatives refer to other options that could be chosen instead.

Question 12

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 limitations mentioned by Chad are hindrances to rational decision making, as they affect the ability to gather and process all the necessary information and weigh the alternatives objectively before making a decision. Satisficing refers to choosing the first acceptable solution rather than exploring all alternatives, intuitive decision making relies on instincts and feelings rather than logic and analysis, MBO (management by objectives) is a process of defining and tracking specific objectives and goals, and nonrational decisions are made without a systematic analysis of the alternatives.

Question 13

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,so she looks for cars until she finds a model that is satisfactory.Paula is following the _____ model.

Accepted Answer

Paula is satisficing, which means that she is selecting the first option that meets her minimum criteria, rather than thoroughly evaluating all possible alternatives. This is a common approach when time, resources, or information are limited.

Question 14

Elvira is using the rational model of decision making.The alternative that she chose and implemented does not appear to be working.To correct the situation,Elvira should consider

Accepted Answer

The rational model of decision making involves evaluating alternatives and selecting the best one based on available information. If the alternative chosen is not working, Elvira should consider other alternatives by either giving it more time, changing it slightly, trying another alternative or starting over from scratch. Simply giving it more time and not changing anything (option B) may not be effective in correcting the situation. Doing nothing (option C) or cutting costs/increasing organization synergy (option D) may not address the root of the problem. Starting over (option E) may be necessary in some cases, but should only be considered after evaluating other alternatives. Therefore, option A is the best choice.

Question 15

Female investors make trades much less often than men because they

Accepted Answer

Studies have shown that female investors tend to do more research and take a more holistic approach, considering factors beyond just numbers, when making investment decisions. This may lead to less frequent trades. The other options do not have sufficient evidence or sound reasoning to support them as the correct answer.

Question 16

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 which of the following questions?

Accepted Answer

In the third step of rational decision making, you should evaluate each alternative according to whether it is ethical, feasible, and effective. Cost and quality are important factors to consider, but ethical considerations and feasibility are just as important to make a rational decision. Option D includes all three important considerations in evaluating alternatives.

Question 17

Olivia,the owner of The Town Gazette,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 because so much news is now available 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.Olivia is relying on _______ by demonstrating that managers need to think and act as if their company is an unfinished prototype,and by seeing her business as outsiders do.

Accepted Answer

Olivia is relying on evidence-based decision making by recognizing the drop in demand for her print newspaper and shifting the focus to an internet news service. She is using data and evidence to make informed decisions rather than relying solely on intuition or knee-jerk reactions. Additionally, by seeing her business from an outsider's perspective, she is using a key aspect of evidence-based decision making - gathering information and perspectives from multiple sources.

Question 18

_____ is 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.

Accepted Answer

Bounded rationality proposes that decision makers cannot always be completely rational due to various limitations and constraints. The other options are either specific decision making approaches or tools and do not fully encompass the concept of bounded rationality.

Question 19

José,the sales manager for a software development firm,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 the third step he evaluated alternatives and selected a solution.José needs to _____ in the fourth and final step.

Accepted Answer

In the fourth step of the rational decision making model, José needs to implement and evaluate the training program that he has selected. This step involves putting the chosen solution into action and monitoring its effectiveness. Therefore, option C is the correct answer. While the other options may also be important considerations, they are not specifically part of the fourth step of the rational decision making model.

Question 20

ABC Medical Technology,a fast-growing global research firm,has accumulated so much client information that conventional database management systems cannot handle its customers' needs.Therefore,ABC 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 The Wall Street Journal as a "real pioneer in innovation and productivity." ABC Medical Technology is tapping the power of

Accepted Answer

The scenario mentions that ABC Medical Technology has accumulated a large amount of client information that conventional database management systems cannot handle. Therefore, they purchased sophisticated analysis software and supercomputing-level hardware. This indicates that they are dealing with a large amount of data, which is commonly referred to as "Big Data." The other options (A, B, C, and D) do not specifically address the concept of Big Data.

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