CHAPTER 3 DECISION MAKING MGT162

Devil's advocacy approach refer to a technique that uses the experts to make predictions and forecasts about future events without meeting face to face.

• true

• false

In the brainstorming technique, ideas will be criticized and evaluated quickly during the session.

• true

• false

Amran want to buy a house. He collects the local real estate market data and financial data. Based on the data, he develop some cases, such as buying a small house close to the downtown or buying a bigger house in a suburb area. After making cases, it is time to predict what happens in each case. If he buys a house in a suburb, he has more room, access to nature, more friendly community, but the house appreciation will probably not be too much. In the other case, he might have a smaller house, access to more restaurants and nightlife events, and his house will appreciate significantly in the current market. This refer to which decision making situation

• Risk

• Uncertainty

• Certainty

• Ambiguity

Uncertainty is a condition where there is no knowledge about the future events while risk refer to the probability of winning or losing something worthy.

• true

• false

A man lost his job and is unable to pay his rent. Because of this, he makes the choice to steal money from the local convenience store. In this situation, the man makes decision under _______situation whereby he already knew the potential of the outcome.

• certainty

• risk

• uncertainty

• ambiguity

Programmed decision involves making _______decision

• routine

• unique

• unusual

Barkoba wanted to purchase a new car. He has surveyed some of the car models and evaluated those which fits to his criteria. In the decision making process, this refer to which steps?

• Step 3: generating alternatives

• Step 2: identifying objectives

• Step 4: evaluating alternatives

Emilia is a CEO in an online fashion business. Her company currently sells to the South East Asian market only. However, due to high market growth, she is deciding to expand the business. Which type of decision making that she has to make?

• Programmed decision

• Non-programmed decision

Your current handphone has become outdated and is facing with some issues. Therefore, you have planned to purchase a new one. According to the decision making process, how many steps does it take to make the decision?

• 6

• 7

• 8

One of the advantage of group decision making is

• Minority domination

• Concern for individual rather than group goals

• Higher level of satisfaction and acceptance