A) seasonal B) risk
C) uncertainty D) certainty Answer: B
Diff: 3 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
78) ________ is a situation in which a decision maker has neither certainty nor reasonable probability estimates available. A) Certainty B) Risk
C) Uncertainty D) Maximax Answer: C
Diff: 1 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
79) Nonprogrammed decisions are typically made under a condition of ________. A) certainty
B) low levels of risk C) uncertainty D) reliability Answer: C
Diff: 3 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
80) A person at a horse racetrack who bets all of his or her money on the
odds-based long shot to \of choice? A) maximax B) maximin C) minimax D) minimin Answer: A
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
81) What best describes the psychological orientation of an individual making a \A) optimist B) realist
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C) pessimist D) satisficer Answer: A
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
82) Optimistic managers could be expected to utilize their maximax orientation when they ________.
A) maximize the maximum payoff B) maximize the minimum payoff C) minimize the maximum regret D) minimize the minimum regret Answer: A
Diff: 1 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
83) What is the psychological orientation of a decision maker who makes a \A) optimist B) realist C) pessimist D) satisficer Answer: C
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
84) Which of the following best describes \payoff\A) maximax B) maximin C) minimax D) minimin Answer: B
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
85) A manager who desires to minimize his or her maximim \________ choice. A) maximax B) maximin C) minimax D) minimin
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Answer: C
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
86) Many managers use ________ or rules of thumb to simplify their decision making. A) heuristics B) biases C) errors D) habits Answer: A
Diff: 1 Page Ref: 133 Topic: Decision-Making Styles
87) When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance, they are exhibiting ________. A) self-serving bias B) the anchoring effect
C) immediate gratification bias D) overconfidence bias Answer: D
Diff: 1 Page Ref: 133 Topic: Decision-Making Styles
88) When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments, they are exhibiting ________.
A) availability bias B) the anchoring effect C) self-serving bias D) confirmation bias Answer: D
Diff: 2 Page Ref: 133 Topic: Decision-Making Styles
89) When decision makers assess the likelihood of an event based on how closely it resembles other events or sets of events, they are using ________. A) availability bias B) framing bias
C) selective perception bias D) representation bias
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Answer: D
Diff: 2 Page Ref: 134 Topic: Decision-Making Styles
90) What is the tendency for decision makers to falsely believe that they would have accurately predicted the outcome of an event once that outcome is actually known?
A) the hindsight bias B) the sunk costs error C) the randomness bias
D) the selective perception bias Answer: A
Diff: 2 Page Ref: 134 Topic: Decision-Making Styles
91) To make effective decisions in today's fast-moving world, managers need to ________.
A) use the five-stage decision-making process B) know when it is time to call it quits C) ignore cultural differences
D) identify their style of decision making Answer: B
Diff: 1 Page Ref: 135
Topic: Effective Decision Making in Today's World
92) What is a characteristic that the experts say an effective decision-making process has?
A) It is inconsistent.
B) It acknowledges only objective thinking.
C) It focuses on all factors?even those that do not seem important. D) It requires only as much information and analysis as is necessary. Answer: D
Diff: 2 Page Ref: 136
Topic: Effective Decision Making in Today's World
93) What term is used by Navy aviators to describe a gut feeling that something isn't right? A) leemers B) the creeps C) uneasiness D) regret Answer: A
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Diff: 3 Page Ref: 136
Topic: Effective Decision Making in Today's World
94) Managers of highly reliable organizations (HROs) get the input of ________ and let them make decisions. A) CEOs
B) frontline workers C) customers D) suppliers Answer: B
Diff: 1 Page Ref: 136
Topic: Effective Decision Making in Today's World
95) When highly reliable organizations (HROs) face complexity, they ________. A) try to simplify data
B) aim for deeper understanding of the situation C) defer to the experts D) act, then think Answer: B
Diff: 2 Page Ref: 136
Topic: Effective Decision Making in Today's World
Decisions, Decisions (Scenario)
Sondra needed help. Her insurance company's rapid growth was necessitating making some changes, but what changes? Should they add to the existing information system or should they buy a new system? She was given the
responsibility of analyzing the company's present information system and deciding what the company should do that would give them plenty of room. She was confused and needed help in making the correct decision.
96) According to the decision-making process, the first step Sondra should take is to ________.
A) analyze alternative solutions B) identify decision criteria
C) evaluate her decision's effectiveness D) identify the problem Answer: D
Diff: 2 Page Ref: 121
Topic: The Decision-Making Process
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