• _____is a desire for definite knowledge, rather than ambiguity or confusion.

Select one:

a.

None of the above is correct.

b.

Bayes theorem

c.

Calibration theory

d.

Need for cognition

e.

Judgment convergence

• Advising managers to be sensitive to new information and to revise prior judgments in light of new information reduces the effects of which of the following heuristics?

Select one:

a.

Confirmation bias

b.

Availability heuristic

c.

Representativeness heuristic

d.

Simulation heuristic

e.

Anchoring-and-adjustment heuristic

• Focusing on _____ leads decision makers to act _____.

Select one:

a.

benefits; risk seeking

b.

costs; risk averse

c.

None of the above is correct.

d.

benefits; risk averse

e.

losses; risk averse

• People sometimes _____ base rate information because it is a statistic.

Select one:

a.

ignore

b.

over estimate

c.

misuse

d.

emphasize

e.

over use

• Taking books home over a holiday expecting to do lots of work and doing nothing at all is an example of:

Select one:

a.

the planning fallacy

b.

confidence

c.

unfreezing

d.

redundancy

e.

neglecting base rates

• The case of the U.S. automobile industry maintaining the status quo while the Japanese developed innovative new solutions to old problems is an example of:

Select one:

a.

poor decision frame management

b.

openness to new frames

c.

abandoning an operations research perspective

d.

high need for cognitive closure

e.

relying too heavily on Bayes Theorem

• The decision aid involving the construction of a key list of inputs for a decision, importance weights for each input, and objective ratings of each input for each decision alternative is known as:

Select one:

a.

a subjective linear model

b.

an actuarial model

c.

an objective linear model

d.

None of the above are correct.

e.

Both a and b are correct.