106 CHAPTER 9 DECISION MAKING BY INDIVIDUALS AND GROUPS MULTIPLE CHOICE THE DECISION-MAKING PROCESS 1. Which of the following is an example of a programmed decision situation? A. arranging financing for constructing anew $50 million office building B. reorder of raw materials from an established supplier C. purchase of a new mainframe computer D. a firm's purchase consideration of a parts manufacturer ANSWER: B, medium, appl., pg. 200 2. All of the following are characteristics of a nonprogrammed decision situation EXCEPT: A. complex B. multivariate C. unstructured D. new 3. The initial step in a problem solving, decision situation is: A. problem recognition B. data analysis C. generation of alternatives D. feedback 4. The final step in the decision-making process is: A. implementation B. exploring alternatives C. feedback and monitoring D. selecting a course of action 5. Intuition would be a major part of the input for a manager making what kind of decision? A. programmed B. rational C. breakeven point D. nonprogrammed ANSWER: D, medium, analysis, pg. 200
107 Chapter 9 MODELS OF DECISION MAKING 6. An effective decision is timely, acceptable to the individuals affected by it, and: A. efficient B. achievable C. specific D. meets the desired objective Rational Model 7. The rational model of decision making assumes: A. preferences of the decision maker are inconsistent B. that all possible alternatives can't be known to decision makers C. that outcomes can't be optimized D. that the decision maker can calculate the probability of success for alternatives ANSWER: D, medium, analysis, pg. 201 8. In the rational model, the decision maker strives to: A. satisfice B. optimize C. select the alternative agreeable to the majority D. apply a heuristic Bounded Rationality Model 9. Under the bounded rationality model of problem solving and decision making,: A. managers follow statistical rules for decision making B. managers critically view the world as complex and multivariate C. managers generate a wide array of decision options and select the one that meets all decision criteria D. managers are comfortable making decisions without identifying all options ANSWER: D, hard, analysis, pg. 201 10. The model of bounded rationality was first proposed by: A. Victor Vroom B. Phillip Yetton C. Herbert Simon D. Carl Jung 11. An important element of the bounded rationality model is: A. certainty B. satisficing C. unlimited information search D. optimizing ANSWER: B, medium, K&C, pg. 201
Decision Making by Individuals and Groups 108 12. Heuristics are: A. algorithms based on complex decision making B. complex decision rules used in complex situations C. shortcuts in decision making that save mental activity D. mathematical approaches to decision making 13. Which decision-making model is the most realistic in portraying the managerial decision process?
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