Question 1

Emotional signals are valid intuitions when they are based on

Accepted Answer

A)   accurate mental models.
B)   gut feelings.
C)   rational choice.
D)   confirmation bias.
E)   external confirmation.

Question 2

Decision makers might succumb to the solution-focused problem trap because

Accepted Answer

A)   they feel comfort in having closure to problem.
B)   they prefer ambiguity rather than decisiveness.
C)   it avoids the escalation of commitment problem.
D)   it avoids problems of bounded rationality.
E)   it helps in minimizing the biases caused by mental models.

Question 3

Numerous studies on participative decision making, task conflict, and team dynamics have found that involvement

Accepted Answer

A)   brings out less diverse perspectives.
B)   tests ideas.
C)   provides worst alternatives.
D)   provides less valuable knowledge.
E)   brings out weakened employee commitment.

Question 4

Leading business writers emphasize that ________ is one of the most important and challenging tasks in the decision-making process.

Accepted Answer

A)   implementing the decision
B)   rational maximization
C)   postdecisional justification
D)   confirmation bias
E)   bounded rationality

Question 5

Which of the following statements is correct regarding emotions and intuition?

Accepted Answer

A)   All emotional signals are intuition.
B)   Intuition is purely an emotional experience.
C)   Intuition exists after conscious rational analysis of a situation.
D)   Mental models have no effect on intuition.
E)   Intuition involves emotional experiences and rapid nonconscious analysis.

Question 6

Programmed decisions are less likely to require employee involvement.

Accepted Answer

A) True 
 B)False

Question 7

All rational decisions rely primarily on two pieces of information: the probability that each outcome will occur and

Accepted Answer

A)   the valence or expected satisfaction of each outcome.
B)   the personal preferences of the decision maker.
C)   the likelihood of employee commitment.
D)   the impact on profitability.
E)   competitor's reactions.

Question 8

Which of the following is not a reason people engage in satisficing rather than maximization?

Accepted Answer

A)   They lack the capacity and motivation to process a huge volume of information.
B)   They lack complete and perfect information.
C)   Decisions with many alternatives can be cognitively and emotionally draining.
D)   Alternatives present themselves over time, not all at once.
E)   It allows them to choose the alternative with the highest payoff.

Question 9

In the rational choice decision process model, which of the following immediately follows the step where possible choices have been discovered or developed?

Accepted Answer

A)   Choose the best decision process.
B)   Discover possible choices.
C)   Select the choice with the highest value.
D)   Implement the selected choice.
E)   Evaluate the selected choice.

Question 10

The representativeness heuristic refers to the tendency

Accepted Answer

A)   to choose an alternative that is good enough rather than the best.
B)   for people to influence an initial anchor point.
C)   to evaluate probabilities of an event or an object by how closely it resembles another event or object.
D)   to estimate the probability of something occurring by how easily we can recall those events.
E)   for decision makers to evaluate alternatives sequentially rather than comparing them all at once.

Question 11

One difficulty that decision makers experience in problem identification is that suppliers, employees, and customers offer and withhold information that distorts the situation. This problem is known as

Accepted Answer

A)   mental models.
B)   programmed decision making.
C)   perceptual defense.
D)   decisive leadership.
E)   stakeholder framing.

Question 12

With funding from her family, Sarine is currently developing a new line of dolls for her business, which she hopes will take her company to the next level. At first, she encountered some minor problems with the construction of the dolls and spent a fair amount of money engineering a way to enable them to be as she envisioned them to be. Unfortunately, she then found out that there was a patent protecting the way the dolls arms were connected, so she spent more money redesigning the dolls. After an unexpectedly uninterested response from the public in the dolls, she decided that they needed to be marketed differently in order to sell. With this in mind, Sarine allocated more resources to marketing, had the packaging of the dolls redesigned, and created a new set of advertising materials. The cost of manufacturing these dolls has now exceeded the initial proposed cost by four times, but she is determined to make it work. She is embarrassed by how this has gone but continues to put on a brave front.
-Sarine is most likely making decisions to continue with these dolls at this point because of

Accepted Answer

A)   self-justification.
B)   self-enhancement.
C)   a decline of commitment.
D)   prospect theory.
E)   closing costs.

Question 13

When faced with a large number of alternatives, many people use a decision strategy that is even less cognitively challenging than satisficing? Specifically, they

Accepted Answer

A)   anchor and adjust.
B)   use heuristics.
C)   use the rational choice process.
D)   maximize
E)   make no decision.

Question 14

The rational choice decision-making process selects the choice with the highest value through the

Accepted Answer

A)   calculation of probability and valence.
B)   rational selective denominator.
C)   calculation of choice intensity and ambiguity.
D)   implicit favorite model.
E)   anchoring and adjustment heuristics.

Question 15

Rational choice decision making involves an unsystematic and haphazard process.

Accepted Answer

A) True 
 B)False

Question 16

The Braided Bread company is struggling with how to break into the bagel market. They see this as an opportunity for growth, as it would not require any new machinery. The downside is that there is already a bagel shop in town.
-Since Braided Bread has identified the problem, their next step is to

Accepted Answer

A)   choose the best decision process.
B)   develop possible choices.
C)   select the choice with the highest value.
D)   implement the selected choice.
E)   evaluate the selected choice.

Question 17

One of the most important conditions for creativity is that an organization has

Accepted Answer

A)   insufficient resources.
B)   closed communication.
C)   extreme time pressures.
D)   a learning orientation.
E)   a low level of job enrichment.

Question 18

________ shape(s)  how we evaluate information, not just which choice we select.

Accepted Answer

A)   Decisions
B)   Emotions
C)   Values
D)   Cognitive dissonance
E)   Design thinking

Question 19

What is meant by "divine discontent"?

Accepted Answer

A)   Decision makers are never satisfied with current conditions, so they more actively search for problems and opportunities.
B)   It is much easier to discover blind spots in problem identification when listening to how others perceive the situation.
C)   Employees can minimize problem identification errors by discussing the situation with colleagues and clients.
D)   Decision makers are more motivated to consider other perspectives of reality.
E)   Leaders require considerable willpower to resist the temptation of looking decisive.

Question 20

With funding from her family, Sarine is currently developing a new line of dolls for her business, which she hopes will take her company to the next level. At first, she encountered some minor problems with the construction of the dolls and spent a fair amount of money engineering a way to enable them to be as she envisioned them to be. Unfortunately, she then found out that there was a patent protecting the way the dolls arms were connected, so she spent more money redesigning the dolls. After an unexpectedly uninterested response from the public in the dolls, she decided that they needed to be marketed differently in order to sell. With this in mind, Sarine allocated more resources to marketing, had the packaging of the dolls redesigned, and created a new set of advertising materials. The cost of manufacturing these dolls has now exceeded the initial proposed cost by four times, but she is determined to make it work. She is embarrassed by how this has gone but continues to put on a brave front.
-If Sarine had built several low-cost prototypes to test, she would have been able to test which rule of design thinking?

Accepted Answer

A)   human rule
B)   ambiguity rule
C)   re-design rule
D)   tangible rule
E)   creative process rule

Exam 7: Decision Making and Creativity

When faced with a large number of alternatives, many people use a decision strategy that is even less cognitively challenging than satisficing? Specifically, they

Correct Answer
verified

One difficulty that decision makers experience in problem identification is that suppliers, employees, and customers offer and withhold information that distorts the situation. This problem is known as

Correct Answer
verified

________ shape(s) how we evaluate information, not just which choice we select.

Correct Answer
verified

One of the most important conditions for creativity is that an organization has

Correct Answer
verified

Leading business writers emphasize that ________ is one of the most important and challenging tasks in the decision-making process.

Correct Answer
verified

Decision makers might succumb to the solution-focused problem trap because

Correct Answer
verified

Which of the following statements is correct regarding emotions and intuition?

Correct Answer
verified

The representativeness heuristic refers to the tendency

Correct Answer
verified

Rational choice decision making involves an unsystematic and haphazard process.

Correct Answer
verified

All rational decisions rely primarily on two pieces of information: the probability that each outcome will occur and

Correct Answer
verified

Emotional signals are valid intuitions when they are based on

Correct Answer
verified

Which of the following is not a reason people engage in satisficing rather than maximization?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The Braided Bread company is struggling with how to break into the bagel market. They see this as an opportunity for growth, as it would not require any new machinery. The downside is that there is already a bagel shop in town. -Since Braided Bread has identified the problem, their next step is to

Correct Answer
verified

In the rational choice decision process model, which of the following immediately follows the step where possible choices have been discovered or developed?

Correct Answer
verified

Numerous studies on participative decision making, task conflict, and team dynamics have found that involvement

Correct Answer
verified

What is meant by "divine discontent"?

Correct Answer
verified

Programmed decisions are less likely to require employee involvement.

Correct Answer
verified

The rational choice decision-making process selects the choice with the highest value through the

Correct Answer
verified

Exam 7: Decision Making and Creativity

When faced with a large number of alternatives, many people use a decision strategy that is even less cognitively challenging than satisficing? Specifically, they

Correct AnswerverifiedShow Answer

One difficulty that decision makers experience in problem identification is that suppliers, employees, and customers offer and withhold information that distorts the situation. This problem is known as

Correct AnswerverifiedShow Answer

________ shape(s) how we evaluate information, not just which choice we select.

Correct AnswerverifiedShow Answer

One of the most important conditions for creativity is that an organization has

Correct AnswerverifiedShow Answer

Leading business writers emphasize that ________ is one of the most important and challenging tasks in the decision-making process.

Correct AnswerverifiedShow Answer

Decision makers might succumb to the solution-focused problem trap because

Correct AnswerverifiedShow Answer

Which of the following statements is correct regarding emotions and intuition?

Correct AnswerverifiedShow Answer

The representativeness heuristic refers to the tendency

Correct AnswerverifiedShow Answer

Rational choice decision making involves an unsystematic and haphazard process.

Correct AnswerverifiedShow Answer

All rational decisions rely primarily on two pieces of information: the probability that each outcome will occur and

Correct AnswerverifiedShow Answer

Emotional signals are valid intuitions when they are based on

Correct AnswerverifiedShow Answer

Which of the following is not a reason people engage in satisficing rather than maximization?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Braided Bread company is struggling with how to break into the bagel market. They see this as an opportunity for growth, as it would not require any new machinery. The downside is that there is already a bagel shop in town. -Since Braided Bread has identified the problem, their next step is to

Correct AnswerverifiedShow Answer

In the rational choice decision process model, which of the following immediately follows the step where possible choices have been discovered or developed?

Correct AnswerverifiedShow Answer

Numerous studies on participative decision making, task conflict, and team dynamics have found that involvement

Correct AnswerverifiedShow Answer

What is meant by "divine discontent"?

Correct AnswerverifiedShow Answer

Programmed decisions are less likely to require employee involvement.

Correct AnswerverifiedShow Answer

The rational choice decision-making process selects the choice with the highest value through the

Correct AnswerverifiedShow Answer

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