#1
Which of the following is NOT a common decision-making challenge in management?
Incremental Decision Making
ExplanationChoosing small adjustments over radical changes.
#2
What is the term for the tendency to favor information confirming existing beliefs or decisions?
Confirmation Bias
ExplanationPreferring data that supports preconceptions.
#3
What is the term for the tendency to rely on the first piece of information encountered when making decisions?
Anchoring Bias
ExplanationFixating on initial data points as reference points for judgments.
#4
What is the term for the tendency to underestimate the time, costs, and risks associated with a decision?
Optimism Bias
ExplanationUnderestimating negative aspects and overestimating positive outcomes.
#5
Which of the following decision-making biases is characterized by the preference for options that maintain the status quo?
Status Quo Bias
ExplanationPreferring options that avoid change.
#6
Which of the following is a characteristic of 'decision fatigue'?
Reduced ability to make quality decisions after a series of previous decisions
ExplanationDecreased decision quality following prolonged decision-making activity.
#7
Which of the following is a characteristic of satisficing in decision-making?
Selecting the first satisfactory option without considering all alternatives
ExplanationAccepting a satisfactory choice without exploring all possibilities.
#8
What does the term 'bounded rationality' refer to in the context of decision-making?
The limitation of cognitive abilities and information processing in decision-making
ExplanationConstraints on human reasoning and information.
#9
What is the primary difference between programmed and non-programmed decision-making?
Programmed decisions are routine and repetitive, while non-programmed decisions are unique and novel.
ExplanationRoutine choices versus unique challenges.
#10
In the context of decision-making, what does VUCA stand for?
Volatility, Uncertainty, Complexity, Ambiguity
ExplanationConditions of instability, unpredictability, intricacy, and vagueness.
#11
What is the primary role of emotions in decision-making?
To provide intuition and facilitate quick decision-making
ExplanationEmotional input for instinctual and rapid choices.
#12
Which of the following is a strategy to address the anchoring bias in decision-making?
Encourage decision-makers to consider a wide range of alternatives
ExplanationPrompting consideration of diverse options to counteract bias.
#13
Which of the following is a technique used to mitigate the escalation of commitment bias in decision-making?
Regularly evaluating the progress and outcomes of decisions
ExplanationContinuously assessing decision results to avoid doubling down on failures.
#14
Which of the following is a technique used to overcome the availability bias in decision-making?
Regularly reviewing historical data and statistics
ExplanationExamining past data to counteract biased perceptions of probability.
#15
What is the concept of 'groupthink' in decision-making?
The tendency of group members to conform to a unanimous decision without critical evaluation of alternatives
ExplanationPrioritizing consensus over critical analysis in groups.
#16
What is the term for the tendency to continue investing resources into a failing course of action due to past investments?
Sunk Cost Fallacy
ExplanationPersisting with failed endeavors because of prior investments.
#17
Which of the following is a characteristic of the Delphi technique in decision-making?
It utilizes iterative rounds of anonymous feedback to achieve consensus.
ExplanationGathering anonymous feedback iteratively for group consensus.
#18
Which of the following decision-making models emphasizes the importance of intuition and experience?
Administrative Decision-Making Model
ExplanationPrioritizing intuition and experience in decision processes.