Making Decisions

What is the first step in the decision-making process?

• Implementing the decision

• Identifying the problem

• Evaluating the outcome

• Analyzing the alternatives

Answer explanation

The first step in the decision-making process is identifying the problem, as it sets the foundation for analyzing alternatives and implementing a solution.

What is the difference between programmed and non-programmed decisions?

• Programmed decisions are reversible, while non-programmed decisions are irreversible

• Programmed decisions are made by individuals, while non-programmed decisions are made by groups

• Programmed decisions follow established guidelines, rules, or procedures, while non-programmed decisions are unique and require a custom approach.

• Programmed decisions are always successful, while non-programmed decisions often fail

Answer explanation

Programmed decisions follow established guidelines, rules, or procedures, while non-programmed decisions are unique and require a custom approach.

Explain the concept of rational decision-making.

• Rational decision-making is based on emotions rather than logic

• Rational decision-making consists of randomly selecting an option

• Rational decision-making involves flipping a coin to decide

• Rational decision-making involves identifying the problem, generating alternative solutions, evaluating those alternatives, making a choice, implementing the decision, and reflecting on the outcome to learn and improve.

Answer explanation

Rational decision-making involves identifying the problem, generating alternative solutions, evaluating those alternatives, making a choice, implementing the decision, and reflecting on the outcome to learn and improve.

What are the common decision-making biases to be aware of?

• confirmation bias, anchoring bias, availability heuristic, overconfidence bias, recency bias

• sunk cost fallacy

• bandwagon effect

• hindsight bias

Answer explanation

The common decision-making biases to be aware of are confirmation bias, anchoring bias, availability heuristic, overconfidence bias, and recency bias.

How can group decision-making be beneficial?

• By promoting groupthink and conformity

• By discouraging collaboration and teamwork

• By allowing diverse perspectives, increasing creativity, improving problem-solving through collaboration, sharing responsibility, and increasing acceptance of final decisions.

• By limiting input to only a few individuals

Answer explanation

By allowing diverse perspectives, increasing creativity, improving problem-solving through collaboration, sharing responsibility, and increasing acceptance of final decisions.

Discuss the role of emotions in decision-making.

• Emotions always lead to rational decisions.

• Emotions influence perceptions, preferences, and choices in decision-making. They provide valuable information but can also lead to biases and irrational decisions. Understanding and managing emotions is crucial for making sound decisions.

• Emotions are only relevant in personal matters, not professional decisions.

• Emotions have no impact on decision-making.

Answer explanation

Emotions influence perceptions, preferences, and choices in decision-making. They provide valuable information but can also lead to biases and irrational decisions. Understanding and managing emotions is crucial for making sound decisions.

What is the importance of ethical considerations in decision-making?

• Ethical considerations only benefit a select few individuals

• Ethical considerations are irrelevant in decision-making

• Ethical considerations are important in decision-making to ensure integrity, fairness, and respect for all stakeholders.

• Ethical considerations hinder progress and innovation

Answer explanation

Ethical considerations are important in decision-making to ensure integrity, fairness, and respect for all stakeholders.

How can decision trees be used in making complex decisions?

• By breaking down the decision-making process into a series of simple, binary choices based on different criteria.

• By asking a stranger on the street

• By consulting a magic eight ball

• By flipping a coin for each decision

Answer explanation

By breaking down the decision-making process into a series of simple, binary choices based on different criteria.

Explain the concept of bounded rationality.

• Bounded rationality refers to the concept that individuals' decision-making is constrained by various factors such as limited information, cognitive abilities, and time.

• Bounded rationality is the belief that individuals always make perfectly rational decisions.

• Bounded rationality suggests that individuals have unlimited access to information for decision-making.

• Bounded rationality implies that individuals' decisions are not influenced by cognitive limitations.

Answer explanation

Bounded rationality refers to the concept that individuals' decision-making is constrained by various factors such as limited information, cognitive abilities, and time.

What are the potential consequences of making poor decisions?

• Winning the lottery

• The potential consequences of making poor decisions include financial loss, damaged relationships, missed opportunities, and negative impact on well-being.

• Becoming famous overnight

• Finding a pot of gold at the end of a rainbow

Answer explanation

The potential consequences of making poor decisions include financial loss, damaged relationships, missed opportunities, and negative impact on well-being.