Q Decision Making MCQ
Q Decision Making MCQ
Q Decision Making MCQ
38) 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
40) 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
41) 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
42) 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
43) 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
44) For a high-tech bicycle buyer, decision criteria would be determined by ________.
A) whatever most bike buyers recommend
B) expert ratings in bike magazines
C) technical specifications
D) personal preferences of the buyer
45) Which of the following is LEAST likely to be a decision criterion for a high-tech bicycle buyer who cares primarily
about performance?
A) warranty
B) gear mechanism
C) frame composition
D) brake assembly
46) Which of the following would be a fairly objective criterion by which a bicycle buyer could assess different bike
models?
A) handling
B) weight
C) quality of craftsmanship
D) style
47) A manager chooses to ignore a rigorous decision-making process and select TV monitor A over monitor B because
he "trusts" company A more than company B. If the decision he made was rational, which of the following is true?
A) Monitor A is really the better choice.
B) The manager should have included "trust" as a criterion.
C) Monitor B is really the better choice.
D) The manager must have made a mistake in calculating his weighted criteria.
48) 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.
50) Because they are not systematic or comprehensive, using heuristics in place of an eight-step decision-making
process can lead to ________.
A) errors and biases
B) consistently better decisions
C) more imaginative decisions
D) decisions that more directly solve problems
51) Which of the following is NOT a reason why managers often resort to using heuristics?
A) They seem to eliminate complexity.
B) They seem to eliminate ambiguity.
C) They save time.
D) They thoroughly explore all alternatives.
52) A banker opts for short-term gain despite indications that his decision might not pay off in the long run. Which
error or bias is the banker guilty of?
A) overconfidence
B) immediate gratification
C) selective perception bias
D) representation
53) A scientist cites two studies that show a positive effect for her drug and ignores five other studies that show a
negative effect. Which error or bias is she committing?
A) hindsight
B) anchoring effect
C) confirmation bias
D) self-serving
54) One legislator sees decreased tax revenue as the key problem in the budget. A second legislator sees increased
spending as the problem. Each of these legislators has a(n) ________.
A) representation bias
B) self-serving bias
C) availability bias
D) framing bias
56) 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
59) Maximizing value for an organization means making sure that ________.
A) the organization makes money
B) the best interests of the organization are addressed
C) the decision made is as rational as possible
D) the decision is as simple as possible
60) Which of the following is NOT assumed in a rational decision?
A) a clear and specific goal
B) a clear and unambiguous problem
C) many alternatives and consequences are known
D) value is maximized
61) 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
62) Which term best characterizes a decision that has bounded rationality?
A) virtually perfect
B) rigorous and comprehensive
C) not good enough
D) good enough
63) Software programs that use a series of questions to aid humans in decision making are called ________.
A) text reading software
B) expert systems
C) group systems
D) support software
64) Expert systems are primarily used to help what kinds of decision makers?
A) lower-level managers
B) top managers
C) senior managers
D) experts
65) Neural networks are able to outdo the performance of humans by ________.
A) analyzing symbols
B) handling up to three variables at once
C) handling hundreds of variables at once
D) reading facial expressions
66) Neural networks differ from expert systems in that they can ________.
A) draw conclusions from data
B) ask questions to the decision maker
C) perform sophisticated calculations
D) learn from experience
68) Herbert Simon won the Nobel Prize in economics for his work in describing ________.
A) how people spend money
B) how most people are perfectly rational
C) how people make decisions
D) how people avoid decisions
69) 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
70) Simon found that in making decisions, most people satisficed because they had limited ability to ________.
A) be truthful and honest in situations that deal with other people
B) think independently
C) deal with difficult situations
D) grasp present conditions and anticipate future conditions
75) Compared to fully rational decision making, what is a major advantage of intuitive decision making?
A) total reliability
B) fully quantified
C) thoroughness
D) speed
84) 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
88) Following the directions to put together an elliptical exercise machine is an example of which way to solve a
problem?
A) procedure
B) rule
C) general practice
D) policy
89) A football coach makes the decision to punt or not to punt on fourth down based on whether or not he is past his
own 50-yard line. Which decision-making method does the coach use?
A) a policy
B) a hunch
C) a procedure
D) a rule
90) Which pair or pairs of terms is true? (This question can have more than one correct answer)
A) structured problem, programmed decision
B) structured problem, structured decision
C) unstructured problem, programmed decision
D) unstructured problem, nonprogrammed decision
91) A judge consults guidelines before handing down an award for damages in a legal case. What kind of decision
making is she doing?
A) following a policy
B) following a rule
C) programmed
D) following a procedure
97) ________ is a situation in which a decision maker has only incomplete information about outcomes and does not
have ability to reasonably estimate outcomes that are not known.
A) Certainty
B) Risk
C) Uncertainty
D) High certainty
98) A low-level manager is most likely to solve problems under which condition?
A) certainty
B) low risk
C) uncertainty
D) low certainty
99) A top manager is most likely to solve problems under which condition?
A) certainty
B) risk
C) uncertainty
D) high certainty
100) A manager has a choice of three investment funds. To assess them, he looks at their past investment records
over the previous five years. The manager is operating under which condition?
A) certainty
B) probability
C) uncertainty
D) risk
101) A manager has a choice of three bank CDs that pay different amounts of interest over different time periods.
The manager is operating under which condition?
A) jeopardy
B) certainty
C) uncertainty
D) risk
102) A manager wants to invest in one of three start-up companies. All three of the companies seem to have a good
business plan. None of the companies has a track record. The manager is operating under which condition?
A) uncertainty
B) certainty
C) low certainty
D) risk
103) A key to what is commonly used to assess risk is for a decision maker to examine the ________ an investment.
A) the promises made by a company for
B) the ads posted by a company for
C) historical data for
D) the minor details of
104) Managers in organizations make group decisions ________.
A) frequently
B) never
C) almost never
D) rarely
106) 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
107) Group decisions generally feature ________ acceptance than decisions made by an individual.
A) greater
B) less
C) neither greater or less
D) more enthusiastic
108) Group decision making typically increases the legitimacy of a decision because the decision was made ________.
A) over a long period of time
B) democratically
C) by experts
D) primarily by the group leader
109) Decisions made by individuals typically suffer from suspicions that the decision maker ________.
A) is dishonest
B) is not rational
C) did not try to analyze the situation
D) did not consult all interested parties
110) Seeking the views of a diverse group of people can provide a decision maker with ________ on issues.
A) fresh perspectives
B) conventional wisdom
C) universal agreement
D) a foolproof way to get the perfect answer
111) 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
114) Since all members of a group are rarely equal in status, most groups suffer from ________.
A) minority domination
B) majority domination
C) too much diversity
D) gridlock
115) ________ can cause people in a group to fail to express their true opinions.
A) Ambiguous responsibility
B) Group imbalance
C) Pressure to conform
D) Years of experience
117) Which of the following is NOT a factor that can increase the probability of groupthink?
A) Influential group members dominate the discussion and the decision-making process.
B) Group leaders stress the importance of consensus above all other concerns.
C) The group has more than 40 group members.
D) Group leaders solicit ideas from all group members without passing judgment on their ideas.
118) 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
119) 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
121) 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
122) The ________ blends the nominal group technique with sophisticated computer technology.
A) personal meeting
B) electronic meeting
C) virtual meeting
D) preliminary meeting
123) What advantages does videoconferencing provide for group decision making?
A) anonymous expression of opinions
B) less groupthink
C) less minority domination
D) savings on travel and time
124) Mid-level managers in a country with high power distance are ________ than managers from a low power
distance country.
A) more likely to make risky decisions
B) less likely to make risky decisions
C) less likely to make safe, conservative decisions
D) more likely to disagree with their leaders' decisions
125) Mid-level managers in a country with low uncertainty avoidance are ________ than managers from a high
uncertainty avoidance country.
A) more likely to make risky decisions
B) less likely to make risky decisions
C) less likely to make foolish decisions
D) more likely to avoid making decisions
126) Individualistic countries like the United States tend to have ________ than group-oriented countries like Japan.
A) more conformity and more cooperation
B) more conformity and less cooperation
C) less conformity and more cooperation
D) less conformity and less cooperation
127) The use of ringisei in Japanese organizations reflects which of the following values in Japanese culture?
A) tradition-following
B) consensus-seeking
C) risk taking
D) go-it-alone
129) When dealing with international organizations, managers must be ________ in order to accommodate the
managing styles of different cultures.
A) as flexible as possible
B) as inflexible as possible
C) as strict as possible
D) as thorough
130) ________ helps people find better solutions to problems using innovative problem-solving methods.
A) Planning
B) Creativity
C) Organization
D) Structure
131) According to one study, about ________ of men and women were somewhat creative.
A) 1 percent
B) 10 percent
C) 30 percent
D) 60 percent
132) One well-accepted model states that individual creativity requires ________, or a commanding understanding of
a subject matter.
A) expertise
B) task motivation
C) high interest
D) intuition
134) Which of the following traits do all creative people seem to share?
A) They like to save time.
B) They get along well with others.
C) They love their work.
D) They don't like to work hard.