Relying on "gut feeling" over cognitive problem solving in decision-making is a phenomenon called __________.
A) sunk costs error
C) overconfidence bias
D) hindsight bias
E) escalation of commitment
The strap on Brad's backpack broke as he lifted it. On the way to class, he stopped at the first store that carries backpacks and although it was not exactly what he wanted, he purchased a new one from the front counter because it would do the job. Brad has made a(n) __________ decision.
E) perfectly rational
Toby is hunting for a new apartment. He is specifically looking for one that is located in the heart of the city and should be available for $600 per month. However, Toby is also willing to pay up to $850 per month for a place situated slightly away from the city centre. According to him, the second option "will also do." This is an example of ________.
A) experience-based decision-making
B) rational decision-making
C) bounded rationality
D) intuitive decision-making
E) non linear thinking
Intuitive decision-making ________.
A) is the systematic use of the best available evidence to improve decision-making practice
B) generally results in poor decisions, and hence managers should learn to ignore their gut feelings
C) is only appropriate for simple problems
D) complements rational decision-making but not bounded rational decision-making
E) is the process of making decisions based on experience, feelings, and accumulated judgment