2025 MGT 300 EXAM #2 UPDATED
QUESTIONS WITH ANSWERS
anchoring and adjustment heuristic - CORRECT ANSWER>>>>-hint: type of heuristic
-A process whereby people base their decisions on the first piece of information they
are given without taking other probabilities into account
availability heuristic - CORRECT ANSWER>>>>-hint: type of heuristic
-A rule of thumb for making judgments on examples and events that immediately spring
to mind
bounded rationality - CORRECT ANSWER>>>>-hint: type of rationality
-is the idea that we are restricted by a variety of constraints when making decisions
common-information bias - CORRECT ANSWER>>>>-hint: type of bias
-the inclination to overemphasize information held by the majority of group members
while failing to consider other perspectives held by the minority
confirmation bias - CORRECT ANSWER>>>>-hint: type of bias
-The tendency to seek out information that fuels our preexisting views and to discount
information that conflicts with our worldview
decision making - CORRECT ANSWER>>>>-is the action or process of identifying a
strategy to resolve problems
-two types: programmed decisions and non-programmed decisions
representativeness heuristic - CORRECT ANSWER>>>>-hint: type of heuristic
-A shortcut that bases a decision on our existing mental prototype and similar
stereotypes
ease-of-recall bias - CORRECT ANSWER>>>>hint: type of bias
-The propensity to over-rely on information recollected from memory when making a
decision
hindsight bias - CORRECT ANSWER>>>>-hint: type of bias
-The tendency to overestimate the ability to predict an outcome of an event
projection bias - CORRECT ANSWER>>>>-hint: type of bias
-The inclination to believe other people think, feel, and act the same way we do
escalation of commitment - CORRECT ANSWER>>>>-The increased commitment to a
decision despite negative information
sunk cost bias - CORRECT ANSWER>>>>hint: type of bias
, -The decision to continue an investment based on past investments of time, effort,
and/or money
framing error - CORRECT ANSWER>>>>-hint: type of error
-The tendency to highlight certain aspects of a situation depending on whether they are
positive or negative to solve a problem while ignoring other aspects
lack of participation error - CORRECT ANSWER>>>>-hint: type of error
-The inclination to exclude certain people from the decision-making process
randomness error - CORRECT ANSWER>>>>-hint: type of error
-The tendency for people to believe they can predict the outcome of chance events
based on false information or superstition
ethical dilemma - CORRECT ANSWER>>>>-conflicts between two or more morally
unpleasant alternatives
-i.e. seeing a friend cheat on a test
Heuristics - CORRECT ANSWER>>>>-are shortcuts or "rules of thumb" that allow us to
make judgments and decisions quickly and efficiently
intuition - CORRECT ANSWER>>>>- is the unconscious process of making decisions
based on imagination and possibilities
justice approach - CORRECT ANSWER>>>>-hint: type of approach
-A way to base decisions on the basis of the fairness
Utilitarian Approach - CORRECT ANSWER>>>>-hint: type of approach
-Action that results in the greater good for the majority of people
Rights Approach - CORRECT ANSWER>>>>-hint: type of approach
-A decision-making method based on using moral principles that least infringe on the
entitlements of others
programmed decisions - CORRECT ANSWER>>>>-hint: type of decision
-are automatic responses to routine and recurring situations
-Usually these situations have occurred in the past and are familiar to the people
dealing with them
-Decisions are generally made by following company policies and guidelines that have
been put in place to deal with specific issues
-For example, Amazon is a market leader in customer service because of its excellent
policy for responding to customer queries and resolving customer complaints
non-programmed decisions - CORRECT ANSWER>>>>-hint: type of decision
QUESTIONS WITH ANSWERS
anchoring and adjustment heuristic - CORRECT ANSWER>>>>-hint: type of heuristic
-A process whereby people base their decisions on the first piece of information they
are given without taking other probabilities into account
availability heuristic - CORRECT ANSWER>>>>-hint: type of heuristic
-A rule of thumb for making judgments on examples and events that immediately spring
to mind
bounded rationality - CORRECT ANSWER>>>>-hint: type of rationality
-is the idea that we are restricted by a variety of constraints when making decisions
common-information bias - CORRECT ANSWER>>>>-hint: type of bias
-the inclination to overemphasize information held by the majority of group members
while failing to consider other perspectives held by the minority
confirmation bias - CORRECT ANSWER>>>>-hint: type of bias
-The tendency to seek out information that fuels our preexisting views and to discount
information that conflicts with our worldview
decision making - CORRECT ANSWER>>>>-is the action or process of identifying a
strategy to resolve problems
-two types: programmed decisions and non-programmed decisions
representativeness heuristic - CORRECT ANSWER>>>>-hint: type of heuristic
-A shortcut that bases a decision on our existing mental prototype and similar
stereotypes
ease-of-recall bias - CORRECT ANSWER>>>>hint: type of bias
-The propensity to over-rely on information recollected from memory when making a
decision
hindsight bias - CORRECT ANSWER>>>>-hint: type of bias
-The tendency to overestimate the ability to predict an outcome of an event
projection bias - CORRECT ANSWER>>>>-hint: type of bias
-The inclination to believe other people think, feel, and act the same way we do
escalation of commitment - CORRECT ANSWER>>>>-The increased commitment to a
decision despite negative information
sunk cost bias - CORRECT ANSWER>>>>hint: type of bias
, -The decision to continue an investment based on past investments of time, effort,
and/or money
framing error - CORRECT ANSWER>>>>-hint: type of error
-The tendency to highlight certain aspects of a situation depending on whether they are
positive or negative to solve a problem while ignoring other aspects
lack of participation error - CORRECT ANSWER>>>>-hint: type of error
-The inclination to exclude certain people from the decision-making process
randomness error - CORRECT ANSWER>>>>-hint: type of error
-The tendency for people to believe they can predict the outcome of chance events
based on false information or superstition
ethical dilemma - CORRECT ANSWER>>>>-conflicts between two or more morally
unpleasant alternatives
-i.e. seeing a friend cheat on a test
Heuristics - CORRECT ANSWER>>>>-are shortcuts or "rules of thumb" that allow us to
make judgments and decisions quickly and efficiently
intuition - CORRECT ANSWER>>>>- is the unconscious process of making decisions
based on imagination and possibilities
justice approach - CORRECT ANSWER>>>>-hint: type of approach
-A way to base decisions on the basis of the fairness
Utilitarian Approach - CORRECT ANSWER>>>>-hint: type of approach
-Action that results in the greater good for the majority of people
Rights Approach - CORRECT ANSWER>>>>-hint: type of approach
-A decision-making method based on using moral principles that least infringe on the
entitlements of others
programmed decisions - CORRECT ANSWER>>>>-hint: type of decision
-are automatic responses to routine and recurring situations
-Usually these situations have occurred in the past and are familiar to the people
dealing with them
-Decisions are generally made by following company policies and guidelines that have
been put in place to deal with specific issues
-For example, Amazon is a market leader in customer service because of its excellent
policy for responding to customer queries and resolving customer complaints
non-programmed decisions - CORRECT ANSWER>>>>-hint: type of decision
