Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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1.
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Julio
has several performance criteria on which to base a decision. He plans to compare each criterion with
the other two remaining criteria. Julio is using __________. a. | absolute comparisons | b. | relative comparisons | c. | criteria comparisons | d. | design criteria | | |
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2.
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Luke
made a decision about purchasing some raw materials based on information he had at the time of
purchase. Later he learned of other information that would have resulted in a decision different from
his original one. This is an example of __________. a. | maximizing | b. | information overload | c. | satisficing | d. | bounded rationality | | |
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3.
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Odette
made a decision that hinged to some extent on the rate of inflation. She was able to attach
probabilities to the likelihoods of inflation increasing, decreasing, and remaining the same. She
made the decision under a condition of __________. a. | maximizing | b. | risk | c. | certainty | d. | uncertainty | | |
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4.
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Hassan
is about to make a decision and sees the possibility of making a gain. Hassan has a __________
frame. a. | maximizing | b. | certain | c. | negative | d. | positive | | |
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5.
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Recently Cecilia saw information that suggested an investment she was contemplating
would likely result in a large gain. She went ahead and made the decision, but the decision was a
poor one and she lost her investment. The decision-making mistake she made is termed
__________. a. | over-reliance on
intuition | b. | availability
bias | c. | representative
bias | d. | anchoring and
adjustment bias | | |
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6.
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Sean
has identified three criteria for renting space in his mall. All applicants must meet the
requirements of all three criteria in order to rent from him. Sean is applying the __________
rule. a. | minimum threshold | b. | dictionary | c. | maximizing | d. | minimizing | | |
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7.
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Suzette
purchased a used car that she believed was an excellent deal. Over time she paid for more and more
repairs, and it became obvious to some people that her car was not an excellent deal. Suzette
continued to believe her original decision was a good one and continued to spend on repairs. This is
a mistake termed __________. a. | anchoring bias | b. | adjustment bias | c. | representative bias | d. | escalation of commitment | | |
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8.
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Joe’s group, a highly cohesive collection of computer programmers, continues to
believe that its decision to program in a certain way is correct. Group members tend to maintain this
position despite mounting evidence from outside that the group is wrong. This is an example of
__________. a. | c-type
conflict | b. | a-type
conflict | c. | devils’
advocacy | d. | groupthink | | |
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9.
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The
members of the president’s task force on competition are engaged in a major conflict. This
conflict focuses not on relevant issues but more on personalities of team members. This is __________
conflict. a. | type-c | b. | type-a | c. | type-b | d. | devil’s advocacy | | |
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10.
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Harvey
is a member of a brainstorming group, but he has to wait to explain his idea until Sasha has fully
explained hers. This is an example of __________. a. | production blocking | b. | evaluation apprehension | c. | a stepladder technique | d. | dialectical inquiry | | |
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True/False
Indicate whether the sentence or statement is true or
false.
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11.
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Chad
hoped to lead his division to a 50% increase in sales, but the division achieved an increase of only
25%. This situation, by definition, represents a problem.
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12.
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Rick
tends to take risks, especially under conditions of uncertainty. Rick likely has a high risk
propensity.
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13.
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Heidi
is assigned the role of critic of her group’s decision to solve a problem in a certain fashion.
This is an example of dialectical inquiry.
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14.
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Martha
engages in a decision-making situation in which a panel of experts responds to questions and to one
another until agreement is reached on an issue. This process represents the nominal group
technique.
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15.
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Paul
belongs to a group in which members join the group discussion one at a time and the group members
listen to each individual member before turning to a group discussion and decision. This process is
termed the stepladder technique.
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