Management Science - Decision Making Process Quiz

In which condition do managers make decisions when they have perfect knowledge of all the information needed?

• Risk

• Uncertainty

• Structured

• Certainty

What type of decisions are already available from past experiences and are appropriate for the problem at hand?

• Programmed decisions

• Intuitive decisions

• Non-programmed decisions

• Randomized decisions

What type of problems are familiar, straightforward, and clear with respect to the information needed to resolve them?

• Structured problems

• Complex problems

• Ambiguous problems

• Unstructured problems

In which decision-making model does the manager rely on past experience and personal assessment of a situation?

• Rational/Logical decision model

• Linear decision making

• Predisposed decision model

• Intuitive decision model

What is the main goal of the rational/logical decision model?

• To ignore critical information

• To rely on hunches and intuition

• To make quick decisions based on limited information

• To eliminate possibilities for error and biases

What type of decision is more unusual and made less frequently?

• Structured decision

• Non-programmed decision

• Randomized decision

• Programmed decision

What is the main disadvantage of the garbage can model of decision-making?

• It leads to satisfactory solutions

• It assumes problems precede alternatives and solutions

• It is an irrational model

• It ensures equal input from all group members

What type of error occurs when a manager is committed to a previous decision despite negative information?

• Randomness error

• Confirmation bias

• Commitment error

• Availability heuristic

Which decision-making model assumes that humans do not undertake a full cost-benefit analysis to determine the optimal decision?

• Linear decision making

• Intuitive decision model

• Bounded Rationality Model

• Rational/Logical decision model

What is the main assumption of the bounded rationality model?

• Managers are capable of eliminating misperceptions and biases

• There are no cost or time constraints

• Managers have all the information about the situation

• Managers do not have perfect information