Managerial Decision Making

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

• a discrepancy between what exists and what the decision maker desires to exist

• a discrepancy between the ideal and the practical

• something that causes irritation

• something that calls for attention

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?

• analysis of alternatives

• evaluation of decision effectiveness

• selection of an alternative

• implementation of an alternative

A person who satisfices fails to ________.

• maximize his or her decision

• understand his or her position

• accept the truth of a situation

• make any kind of decision

One assumption of bounded rationality is that managers can analyze all relevant information about all alternatives for a situation.

• True

• False

Unstructured problems are ________.

• perfectly rational

• clear and straightforward

• situations in which all options are known

• situations in which all options are not known

If a car buyer knows the inventory dealer price of the same car at different dealerships, he or she is operating under what type of decision-making condition?

• risk

• uncertainty

• certainty

• factual

One advantage of group decision making is that it usually provides ________ than individual decision making.

• faster decisions

• more ethical decisions

• less confusion

• more information

Following the directions to put together an exercise machine is an example of which way to solve a problem?

• procedure

• rule

• general practice

• policy