QMB Exam 1
exploration - Answer-seeking existing information to identify dilemmas and ask the right questions
problem with exploration - Answer-data reflects the past, not the present (rarely matches the current
situation)
exploration is - Answer-(1) a type of research, highly unstructured (2) less in costs than conducting new
research (3) helpful for managers in determining the research question
Anchoring - Answer-the tendency, in making judgments, to rely on the first piece of information
encountered or information that comes most quickly to mind
How to avoid anchoring - Answer-take a different perspective, think before asking, seek input, avoid
anchoring others
status quo - Answer-we prefer things to stay the same even when better alternatives exist
How to avoid status-quo trap - Answer-consider your objectives, know you have options, dont
exaggerate switching costs, dont settle
sunk cost trap - Answer-we make decisions that justify past choices even when they no longer seem
valid
, how to avoid sunk cost trap - Answer-involve outsiders, accept that mistakes happen, allow room for
failure
Confirming Evidence Trap - Answer-Seeking out information that supports our existing instinct or point
of view while avoiding information that contradicts it.
how to avoid confirming evidence trap - Answer-consider all evidence, find a devils advocate, avoid yes
me
Framing Trap - Answer-the way we state the problem influences what we decide. we misstake a
problem by defining a choice as a gain/loss, even when its really neither one
How to avoid the framing trap - Answer-always reframe, think in neutral terms, challenge others frames
overconfidence trap - Answer-The tendency of individuals to overestimate the accuracy of their
forecasts.
how to avoid overconfidence trap - Answer-look at the extremes, challenge those extremes, question
estimates
prudence trap - Answer-we adjust estimates to be "on the safe side". we often use excessive caution
when we try to predict uncertain events
how to avoid prudence trap - Answer-aim for accuracy, ask others to do the same
recallability trap - Answer-we are overly influenced by our past experiences - prompts us to give undue
weight to recent dramatic events
exploration - Answer-seeking existing information to identify dilemmas and ask the right questions
problem with exploration - Answer-data reflects the past, not the present (rarely matches the current
situation)
exploration is - Answer-(1) a type of research, highly unstructured (2) less in costs than conducting new
research (3) helpful for managers in determining the research question
Anchoring - Answer-the tendency, in making judgments, to rely on the first piece of information
encountered or information that comes most quickly to mind
How to avoid anchoring - Answer-take a different perspective, think before asking, seek input, avoid
anchoring others
status quo - Answer-we prefer things to stay the same even when better alternatives exist
How to avoid status-quo trap - Answer-consider your objectives, know you have options, dont
exaggerate switching costs, dont settle
sunk cost trap - Answer-we make decisions that justify past choices even when they no longer seem
valid
, how to avoid sunk cost trap - Answer-involve outsiders, accept that mistakes happen, allow room for
failure
Confirming Evidence Trap - Answer-Seeking out information that supports our existing instinct or point
of view while avoiding information that contradicts it.
how to avoid confirming evidence trap - Answer-consider all evidence, find a devils advocate, avoid yes
me
Framing Trap - Answer-the way we state the problem influences what we decide. we misstake a
problem by defining a choice as a gain/loss, even when its really neither one
How to avoid the framing trap - Answer-always reframe, think in neutral terms, challenge others frames
overconfidence trap - Answer-The tendency of individuals to overestimate the accuracy of their
forecasts.
how to avoid overconfidence trap - Answer-look at the extremes, challenge those extremes, question
estimates
prudence trap - Answer-we adjust estimates to be "on the safe side". we often use excessive caution
when we try to predict uncertain events
how to avoid prudence trap - Answer-aim for accuracy, ask others to do the same
recallability trap - Answer-we are overly influenced by our past experiences - prompts us to give undue
weight to recent dramatic events
