Multiple Choice

21. Which of these techniques recognize that decision makers are restricted by constraints when making decisions.

System 1

Delphi

Holistic intuition

Normative intuition

Bounded rationality

22.

Dr. D recently put new tires on his 1967 Ford Pinto. Two weeks ago the alternator needed replaced. Now the mechanic tells him he needs brakes. Reluctantly, he pays for new brakes. Dr. D appears to be the victim of the _____ bias.

framing

overconfidence

escalation of commitment

confirmation

availability

23.

We're seeing a lot of media attention to Covid-19 and people becoming very sick. Because of the continuing media reports, you becomeincreasingly worried about contracting the disease. This would be a goodexample of the _____ heuristic.

availability

representativeness

hindsight

framing

anchoring

24. Sometimes we simplify the decision process by using cognitive shortcuts, even through they can be easily biased. Collectively, these shortcuts could be described as __________ .

• Holistic hunches
• Judgmental heuristics
• Explicit knowledge
• Tacit knowledge
• Normative intuitions

25. Drawing on his understanding of decision biases, Dr. D begings a campus-wide poster campaign marketing his management classes. He knows that if people are more aware of a product or service, like his classes, and have "heard about" them they are more likely to choose that product/service (or class!) over those about which they have not heard. Dr. D is trying to take advantage of the ____ bias.

• escalation
• availability
• System 2
• representativeness
• fundamental attribution

26. Dr. D has to give an important presentation to the Visiting Committee of the college about funding his research proposal. He knows the presentation has to be creative and have a significant "WOW" effect to get funded. But days before the presentation, Dr. D is seen leisurely enjoying a cup of coffee and watching the birds! What does this scenario indicate about Dr. D's understanding of the creative process? (Think about the stages of creativity from the virtual lecture!)

• Dr. D has a good relationship with the Visiting Committee so he's not worried.
• It's easy to ask for an extension for the presentation.
• Coffee can help stimulate creative ideas.
• Dr. D does his best creative workright before the due date, so he's not in any rush.
• Doing "nothing"may be one of the most important creative things we can do.

27. Choosing the best solution to a problem would be an example of _____ .

• System 2
• All answers are correct
• Optimizing
• System 1
• Delphi selection

28. Aunt G has tobuy a used car. She is very picky about thecolor andstyleof the car and looks for this information first. Unfortunately, she then uses this early information, overlooking other information from maintence records and accident reports, as the criteria for evaluating the value of the car. This is an example of

confirmation bias.

availability bias.

anchoring bias.

overconfidence bias.

framing bias.

29.

Match the decision-making style with its description.

1.Directive

2.Conceptual

3.Analytical

4.Behavioral

A. efficient, logical, practical, and systematic

B. respond well to new or uncertain situations

C. adopt a long-term perspective and rely on intuition and discussions with others

D. tend to be non-confrontational

30. A group of six business students were asked to estimate the average wealth of this year's Fortune magazine's richest 400 Americans. Their estimates are listed below. Following guidelines from Sigman and Ariely (the TED video on group decision making), what would the ROBUST AVERAGE be from this group? In assending order, here are the estimates from the six students:

Tim: 2.50 billion

Ping: 2.50billion

Michele: 3.0 billion

Tracy: 3.50 billion

Susan: 3.50 billion

Kevin: 12.0 billion