Chapter 03 - Decision Making Quiz

What is a decision?

• An analysis of potential risks

• A choice from two or more alternatives

• A routine approach to problem-solving

• A set of criteria for evaluating options

What is decision-making?

• The process of creating opportunities

• Responding to threats and avoiding problems

• Responding to opportunities and threats by analyzing options

• A routine approach to repetitive decisions

When does a decision in response to opportunities occur?

• When a manager faces an ambiguous situation

• When managers respond to ways to improve organizational performance

• When adverse events affect the organization

• When all outcomes are uncertain

What is a problem in decision-making?

• A choice from two or more alternatives

• An obstacle that hinders achieving a desired goal or purpose

• A routine decision based on prior experience

• A set of guidelines for making decisions

What are decision criteria?

• Guidelines for routine decisions

• A series of steps used to respond to well-structured problems

• Criteria that define what’s important or relevant to resolving a problem

• An explicit statement about what managers can or cannot do

What is the first step in rational decision-making?

• Appraising each alternative’s strengths and weaknesses

• Listing viable alternatives

• Identifying the problem and ensuring it’s clear and unambiguous

• Assessing the value of each alternative

Which of the following describes a rational decision?

• It is based on preferences that are variable and unpredictable

• It is a random and intuitive choice

• It is logical, consistent, and maximizes value

• It only applies to unstructured problems

Which of the following is a characteristic of structured problems?

• New and unusual

• Familiar and easily defined

• Ambiguous

• Require a custom-made solution

What distinguishes non-programmed decisions from programmed decisions?

• They are repetitive and handled by routine approaches

• They are unique, nonrecurring, and require custom-made solutions

• They are based on explicit rules and procedures

• They are made in situations of certainty

What is a characteristic of decision-making under uncertainty?

• All outcomes are known

• The decision maker can estimate the likelihood of outcomes

• The decision maker has neither certainty nor reasonable probability estimates

• The situation is straightforward and familiar