QTH - CHAPTER 4

1. The second step in the decision-making process is identifying a problem.

A. TRUE
B. FALSE

2 A decision criterion defines factors that are relevant in a decision.

A. TRUE
B. FALSE

[Link] identify a problem by comparing the current state of affairs to some

standard.
A. TRUE
B. FALSE

[Link] criteria are equally important in the decision-making process.

A. TRUE
B. FALSE

[Link] final step of the decision-making process is to implement the alternative that
has been selected.
A. TRUE
B. FALSE

[Link] assumption of bounded rationality is that managers can analyze all relevant
information about all alternatives for a situation.
A. TRUE
B. FALSE

7.A synonym for the word satisfice is maximize.

A. TRUE
B. FALSE

[Link] decision making is systematic, logical, and orderly.

A. TRUE
B. FALSE

[Link] decisions tend to be routine.

A. TRUE
B. FALSE
10. Group decisions tend to provide more complete information than individual
decisions.
A. TRUE
B. FALSE

11. An advantage of group decisions is that they increase the perception of the
legitimacy of the solution.
A. TRUE
B. FALSE

12. Groups tend to be more efficient and less effective than individual decision
making.
A. TRUE
B. FALSE

13. A country with high uncertainty avoidance and high power distance is more
likely to engage in groupthink than a country with low uncertainty avoidance and
low power distance.
A. TRUE
B. FALSE

14. Which of the following defines a problem in the decision-making process?

A. a discrepancy between what exists and what the decision maker desires to exist
B. a discrepancy between the ideal and the practical
C. something that causes irritation
D. something that calls for attention

15. The decision-making process consists of a series of eight steps that identify a
problem and work toward ultimately ________.
A. determining if there is a solution to the problem
B. solving the problem
C. making a plan to solve the problem
D. breaking down the problem into a series of steps

16.A manager can faithfully execute the decision-making process, but still end up
with nothing of value if ________.
A. he fails to identify the correct problem
B. he fails to assign number values to different criteria
C. he solves the problem inefficiently
D. he fails to correctly identify the steps of the process
17. A manager is considering purchasing new computers for her department. The
manager spends time assessing the computers her department now has. Which stage
of the decision-making process is she going through?
A. identification of a problem
B. identification of decision criteria
C. development of alternatives
D. implementation of an alternative

18. A manager is determining what kind of new computers she should purchase for
her department. She has made a list of five different computer models for
consideration. Which stage of the decision-making process is this?
A. selection of an alternative
B. identification of decision criteria
C. development of alternatives
D. analysis of alternatives

19. After purchasing new computers for her department, a manager is now
comparing the performance of the new computers to the computers they replaced.
Which stage of the decision-making process is she carrying out?
A. analysis of alternatives
B. evaluation of decision effectiveness
C. selection of an alternative
D. implementation of an alternative

20. In allocating weights to the decision criteria, which of the following is most
helpful to remember?
A. All weights must be the same.
B. The total of the weights must sum to 100.
C. The high score should be a 10, and no two criteria should be assigned the same
weight.
D. Assign the most important criterion a score, and then assign weights against that
standard.

21. The three main models that managers use to make decisions are ________.
A. rational, bounded rational, and intuitive
B. rational, irrational, bounded rational
C. intuitive, unintuitive, rational
D. bounded rational, intuitive, systematic
22. It is assumed that in most cases, the decisions of all managers are limited by
________.
A. greed and short-sightedness
B. having too much information
C. not being able to analyze all information for all alternatives
D. not being able to act rationally or in the best interests of their organization

23. Which term best characterizes a decision that has bounded rationality?
A. virtually perfect
B. rigorous and comprehensive
C. not good enough
D. good enough

24. Which of the following is the best definition for the word satisfice?
A. very satisfying
B. not sufficient
C. accepts a less than perfect solution
D. requires a perfect solution

25. A person who satisfices fails to ________.

A. maximize his or her decision
B. understand his or her position
C. accept the truth of a situation
D. make any kind of decision

26. Escalation of commitment can occur when people don't ________.

A. want to make a decision
B. want to admit that an earlier decision was flawed
C. accept current conditions
D. understand that conditions have changed

27. Which of the following is NOT a way in which intuition guides people who are
making decisions?
A. Intuition provides ethics and values guidelines.
B. Intuition provides a formal analysis method.
C. Intuition provides experiences to draw from.
D. Intuition draws on knowledge, skills, and training.
28. Emotions and feelings ________ decision making.
A. have no effect on
B. can improve
C. decrease performance in
D. are more important than facts and logic in

29. Structured problems are ________.

A. ambiguous
B. undefined and vague
C. clear and straightforward
D. incomplete

30. Unstructured problems are ________.

A. perfectly rational
B. clear and straightforward
C. situations in which all options are known
D. situations in which all options are not known

31. Which of the following is an example of a structured problem?

A. designing a new MP3 player
B. hiring a lawyer
C. deciding shipping options for a vacuum cleaner
D. drafting a quarterback for a pro football team

32. Structured problems typically have ________ while unstructured problems

typically have ________.
A. only one solution; many solutions
B. many solutions; one solution
C. many solutions; fewer solutions
D. two solutions; three solutions

33. Programmed decisions work well for solving ________.

A. structured problems
B. unstructured problems
C. both structured and unstructured problems
D. poorly defined problems

34. Which of the following is NOT a type of programmed decision?

A. systematic procedure
B. policy
C. brainstorm
D. rule
35. Top managers in an organization tend to ________.
A. make programmed decisions
B. solve structured problems
C. make nonprogrammed decisions
D. solve well-defined problems

36. A top manager is most likely to solve problems under which condition?
A. certainty
B. risk
C. uncertainty
D. high certainty

37. The eight steps of decision making ________

A. can only be employed by individuals
B. can only be employed in very small groups
C. can be employed by individuals and groups
D. can only be employed by groups

38. One advantage of group decision making is that it usually provides ________
than individual decision making.
A. faster decisions
B. more ethical decisions
C. less confusion
D. more information

39. Which of the following is a drawback to seeking diverse views in decision

making?
A. less reliable decision
B. easier decision-making process
C. more time consuming
D. less time consuming

40. Groups decisions are usually ________ individual decisions.

A. more efficient than
B. less efficient than
C. equal in efficiency to
D. more efficient but less effective
41. Which of the following is the most effective number of people to have in a
group?
A. 5-7
B. 2-4
C. 10-15
 D. 16-25

42. Which of the following is used to exclusively generate creative ideas in a group
setting?
A. brainstorming
B. nominal group technique
C. groupthink
D. electronic meetings

43. Which of the following group techniques allows group members to meet
together, but at the same time facilitates independent decision making?
A. brainstorming
B. nominal group technique
C. large meetings of over 50 individuals
D. small meetings of less than 10 individuals

44. Lucia needed help. Her insurance company's rapid growth was necessitating
making some IT changes, but what changes? Should they modify the servers that
they currently used, or purchase an entirely new system? Sondra was confused and
needed help in making the correct decision.
Lucia has decided to collect information about the features the company needs for
its system. Which stage of the decision-making process is she carrying out?
A. identify alternative solutions
B. identify decision criteria
C. evaluate her decision's effectiveness
D. allocate weights to the criteria
45. Lucia needed help. Her insurance company's rapid growth was necessitating
making some IT changes, but what changes? Should they modify the servers that
they currently used, or purchase an entirely new system? Sondra was confused and
needed help in making the correct decision.
Lucia has determined that the speed of the system she settles on is twice as
important as the capacity of the system. Which stage of the decision-making process
is she carrying out?
A. allocation of weights to criteria
B. selecting an alternative
C. implementing the alternative
D. identifying the problem

1 B 30 D
2 A 31 C
3 A 32 A
 4 A 33 A
5 B 34 C
6 B 35 C
7 B 36 C
8 B 37 C
9 A 38 D
10 B 39 C
11 A 40 B
12 A 41 A
13 A 42 A
14 C 43 B
15 B 44 B
16 D 45 A
17 A
18 C
19 B
20 D
21 A
22 C
23 D
24 C
25 A
26 B
27 B
28 B
29 C