#1
Which of the following best defines decision making?
A process of making choices by identifying a decision
Gathering information, and assessing alternative resolutions
Using intuition to make choices
A and B are correct
#2
Which of the following is a technique used to facilitate group decision making by generating a large number of ideas for solving a problem?
Brainstorming
Delphi Technique
SWOT Analysis
Cost-Benefit Analysis
#3
In strategic decision making, what does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
Strategies, Workflows, Objectives, Tactics
Systems, Wins, Obstacles, Techniques
Signs, Warnings, Options, Trials
#4
In decision making, what does the term 'opportunity cost' refer to?
The cost of not choosing the next best alternative
The total cost involved in making a decision
The cost of the resources used in the decision
The financial cost of an opportunity
#5
Which method is often used in business for comparing the financial outcomes of different decisions by listing all costs and benefits?
SWOT analysis
Cost-benefit analysis
Decision tree analysis
Break-even analysis
#6
Which model is based on the premise that decision making is not rational and is shaped by bounded rationality?
Rational model
Administrative model
Classical model
Quantitative model
#7
In decision making, what does the 'satisficing' strategy entail?
Seeking the best possible solution
Choosing the first option that meets the minimum criteria
Using only quantitative data for decision making
Avoiding making any decision
#8
What impact does cognitive bias have on decision making?
It ensures decisions are always rational
It has no impact on decision making
It can lead to errors in judgment and decision making
It improves decision-making speed significantly
#9
What role does feedback play in the decision-making process?
It has no significant role
It is only useful before making a decision
It helps in adjusting future decisions based on past outcomes
It complicates the decision-making process
#10
Which approach to decision making focuses on the outcomes and determines the best choice by calculating the expected values?
Behavioral approach
Normative approach
Descriptive approach
Quantitative approach
#11
How do group decisions generally compare to individual decisions?
They are always superior
They take less time
They can benefit from diverse perspectives but may suffer from groupthink
They are always more biased
#12
What is a common pitfall in decision making known as 'overconfidence bias'?
The tendency to listen to too many opinions before making a decision
The belief that one's own ability, or that their decision, is better than it actually is
Making decisions too quickly without sufficient information
Relying on past decisions too heavily
#13
What is 'analysis paralysis' in the context of decision making?
The quick execution of a decision without thorough analysis
A decision made with complete certainty
The state of over-analyzing or over-thinking a situation so that a decision or action is never taken
Making an analytical decision based on quantitative data
#14
What principle suggests that in decision making, entities should minimize the maximum possible loss?
Risk aversion
Maximin principle
Pareto efficiency
Prospect theory
#15
Which decision-making bias occurs when people rely too heavily on the first piece of information they receive?
Confirmation bias
Anchoring bias
Hindsight bias
Availability bias
#16
Which of the following best describes a heuristic in the context of decision making?
A detailed and complex algorithm used to solve problems
A precise rule or formula for solving a problem
A mental shortcut that allows people to solve problems and make judgments quickly
A comprehensive analysis of all possible alternatives
#17
Which term refers to the tendency to seek, interpret, and remember information that confirms one's preconceptions?
Overconfidence effect
Cognitive dissonance
Confirmation bias
Selective perception
#18
What strategy involves making decisions based on the most easily retrievable information?
Recognition heuristic
Availability heuristic
Simulation heuristic
Representativeness heuristic
#19
In decision making, what is a 'decision tree'?
A graphical representation of decisions and their possible consequences
A chronological listing of all decisions made within a project
A diagram showing the hierarchy of decision makers in an organization
A tool for identifying the root cause of a decision
#20
What does the term 'escalation of commitment' refer to in decision making?
The process of increasing the speed at which decisions are made
A strategy to delegate decision-making authority as situations escalate
The phenomenon of continuing to invest in a decision despite evidence of its ineffectiveness
The systematic increase in options available for making decisions
#21
Which theory suggests that individuals assess their decision-making outcomes based on perceived gains and losses?
Decision Theory
Expected Utility Theory
Prospect Theory
Rational Choice Theory
#22
In the context of ethical decision making, what does the term 'utilitarianism' refer to?
Making decisions based solely on the outcome's utility for the individual
A focus on following universal ethical principles regardless of the outcome
Making decisions that result in the greatest good for the greatest number of people
Ensuring decisions are made with a focus on personal virtue and character
#23
In the context of ethical decision making, which principle emphasizes the importance of the intention behind actions rather than the actions' outcomes?
Consequentialism
Utilitarianism
Deontology
Virtue ethics
#24
What is the primary focus of normative decision theory?
Describing how decisions are made in practice
Predicting the outcomes of different decision-making processes
Prescribing how decisions should be made to be rational
Analyzing the psychological aspects of decision making
#25
Which concept in decision making is concerned with the fairness or equity of the decision process and outcome?
Utilitarianism
Distributive justice
Procedural justice
Interactional justice