1.

Which of the following is NOT a step in rational decision making?

(3 Points)

a) Identify the problem

b) Generate alternatives

c) Gather information

d) Compute optimal decision

2.

In the interplay between system 1 and system 2 thinking, the key goal for managers is:

(3 Points)

a) To improve their use of system 1 thinking

b) To increase the usage of system 2 thinking as much as possible

c) To use system 1 thinking for the most important/crucial problems

d) To identify when they should move from system 1 to system 2 thinking

3.

We make most of our decisions using .., while is used for the most important decisions

(3 Points)

a) System 1, system 2

b) System 2, system 1

c) System 1, system 1

d) System 2, system 2

4.

Most errors occur in ..

(3 Points)

a) System 1

b) System 2

c) Both systems (system 1 and system 2 thinking)

d) None of the above

5.

A rational decision model is based on the assumption that the decision maker ..

(3 Points)

a) Knows the exact problem

b) Can identify all alternatives

c) Chooses the optimal decision

d) All of the above

6.

An optimal search for alternatives should last:

(3 Points)

a) As long as needed to find the best solution

b) As long as needed to find the first good enough solution

c) As long as the cost of the search does not outweigh the value of the added information

d) As long as the cost of the search exceeds the appropriate limits set by the decision

7.

Rating alternatives on each of the decision criteria is considered the most difficult stage of the decision-making process, because:

(3 Points)

a) It assumes we have precisely defined our priorities

b) It requires us to forecast future events

c) It requires us to compare all of the alternatives simultaneously

d) It is likely to fail if our problem is not defined correctly, and this failure will not be detected

8.

We satisfice because ...

(3 Points)

a) We lack the needed information to define the problem properly

b) Of time and cost constraints limiting the quantity and quality of information

c) We have limited intelligence

d) All of the above

9.

Which of the following is an evidence against the rational decision model?

(3 Points)

a) Satisficing

b) Bounded rationality

c) Bounded awareness

d) All of the above

10.

Which of the following is a typical characteristic of heuristics?

(3 Points)

a) They provide us with a simple way of dealing with complex problems

b) They have the best likelihood of reaching an optimal solution to a problem

c) They are time and resource consuming

d) None of the above

11.

People asses the frequency, probability, or likely causes of an event by the degree to which instances of that event are readily available in memory, is what kind of heuristic?

(3 Points)

a) Representativeness

b) Confirmation

c) Availability

d) Affect

12.

When our judgment follow an emotional evaluation that even before any higher level reasoning takes place

(3 Points)

a) Representativeness

b) Confirmation

c) Availability

d) Affect

13.

To address or minimize the impact of biases in our decision making process, it is necessary to:

(3 Points)

a) Unfreeze existing decision making process

b) Provide the necessary information to promote change

c) Create the conditions that refreeze new processes (making the change part of individual's standard repertoire)

d) All of the above

14.

What is the name given to the tendency to being too sure that our judgments and decisions are accurate?

(3 Points)

a) Overprecision

b) Overestimation

c) Overplacement

d) Overjustification

15.

What is the name given to the tendency to thinking we are better than we actually are?

(3 Points)

a) Overprecision

b) Overestimation

c) Overplacement

d) Overjustification

16.

When are we most likely to overplace our performance relative to others?

(3 Points)

a) When we are in a good mood.

b) When we are trying to impress others.

c) When we are working on an easy task.

d) None of the above.

17.

Which of the following practices can we adapt to address overprecision?

(3 Points)

a) Be aware of its existence first and foremost

b) Do not make a lot of decisions that requires precise information

c) Force people to consider alternative outcomes

d) Adopt a new decision habit that requires system 1 thinking

18.

Which of the following is NOT a cause of overprecision?

(3 Points)

a) Relieve the tension

b) Earn trust, creditability, and status

c) Gain control

d) We do not seek contradictory information that disproves our theories

19.

Which of the following is a consequence of overreplacement?

(3 Points)

a) Optimism

b) Inflated expectation of success

c) Planning fallacy

d) Self-enhancement

20.

Which of the below biases prevents us from noticing or focusing on useful, observable, and relevant data?

(3 Points)

a) The illusion of control

b) Bounded rationality

c) Bounded awareness

d) Availability

21.

Which of the following is a consequence of overconfidence? In other words, which of the below is an adverse effect of having positive illusion?

(3 Points)

a) Conflict

b) Inability to learn from mistakes

c) Damage our credibility

d) All of the above

22.

Which of the following is NOT a form of bounded awareness?

(3 Points)

a) Overclaimning

b) Inattentional

c) Change blindness

d) Focalism

23.

Groups have a tendency to focus on _________ information, but not pay much attention to _____________ information?

(3 Points)

a) Shared, unique

b) Unique, shared

c) Important, irrelevant

d) Irrelevant, important

24.

An advantage of group decision making is its

(3 Points)

a) Focus on shared information

b) Possession of more information

c) Ability to reach decisions faster

d) Feature of being less confusing

25.

A person who dismisses evidence suggesting that hes incorrect and does not take advice from others is:

(3 Points)

a) Overprecise

b) Overestimation

c) Overreplacement

d) Overcontrolling

26.

Which of the following heuristic is considered to be the toughest and root of all other biases and heuristics?

(3 Points)

a) Representativeness

b) Confirmation

c) Bounded awareness

d) Overconfidence

27.

Which of the following explains why people sometimes cannot properly identify the problems properly?

(3 Points)

a) Define the problem in terms of a proposed solution

b) Miss a larger more important problem

c) Diagnose the problem in terms of its symptoms

d) All of the above

28.

The tendency to overestimate the speed at which we can complete projects and tasks is called..

(3 Points)

a) Optimism

b) Inflated expectation of success

c) Planning fallacy

d) Self-enhancement

29.

Overconfidence can benefit us in the short-term, but eventually it will negatively impact us.

(3 Points)

a) True

b) False

30.

Submitting to heuristics is unavoidable, and there is no way to make judgment less prone to them. Rather, one can only be aware of the biasing effect heuristics can have on ones judgment.

(3 Points)

a) True

b) False

31.

Why do companies prefer to make decisions within groups? and what is the

problem of making such decisions within a group format?