LOMA 335: The Insurance Company !| !| !| !| !|
and Operations Management !| !| !|
(Module 3) exam with answers !| !| !| !|
A ____________ is a choice about a future action. - Correct answer
!| !| !| !| !| !| !| !| !| !| !| !|
✔decision
1) ____________ level: Strategic decisions focus on establishing and
!| !| !| !| !| !| !| !| !|
revising corporate goals and strategies.
!| !| !| !|
2) ____________ level: Business decisions focus on implementing
!| !| !| !| !| !| !| !|
corporate strategies for a division or business segment.
!| !| !| !| !| !| !|
3) ______________ level: Operational decisions focus on the day-to-
!| !| !| !| !| !| !| !|
day implementation of business-level strategies. - Correct answer ✔1)
!| !| !| !| !| !| !| !| !|
Corporate
2) Business
!|
3) Operational
!|
In efficient and effective organizations, decision makers at the business
!| !| !| !| !| !| !| !| !| !|
and operational levels are ____________ - in other words, they have
!| !| !| !| !| !| !| !| !| !| !|
the necessary authority and responsibility - to make decisions
!| !| !| !| !| !| !| !| !|
appropriate for their level in the company. - Correct answer
!| !| !| !| !| !| !| !| !| !|
✔empowered
,______ ______ decisions are infrequent decisions that can be made
!| !| !| !| !| !| !| !| !| !|
quickly at an individual level because the risks involved with these
!| !| !| !| !| !| !| !| !| !| !|
decisions are relatively small. - Correct answer ✔Ad hoc
!| !| !| !| !| !| !| !|
Big-_____ decisions are infrequent, unfamiliar decisions that can have
!| !| !| !| !| !| !| !| !|
a profound effect on a company's operations and future success.
!| !| !| !| !| !| !| !| !|
Ex: a merger or acquisition, a major shift in corporate strategy, a major
!| !| !| !| !| !| !| !| !| !| !| !| !|
capital purchase - Correct answer ✔bet
!| !| !| !| !|
Cross-_________ decisions are familiar decisions that can have broad !| !| !| !| !| !| !| !| !|
organizational impact. - Correct answer ✔cutting !| !| !| !| !|
Like ad hoc decisions, ___________ decisions are typically low risk
!| !| !| !| !| !| !| !| !| !|
but they involve familiar and frequent decisions. - Correct answer
!| !| !| !| !| !| !| !| !| !|
✔delegated
____________: general rules appropriate for certain situations. - !| !| !| !| !| !| !| !|
Correct answer ✔Heuristics !| !|
Heuristics are sometimes appropriate and useful in business operations,
!| !| !| !| !| !| !| !| !|
in particular for ____ ____ decisions that are low risk and low
!| !| !| !| !| !| !| !| !| !| !| !|
occurrence. - Correct answer ✔ad hoc !| !| !| !| !|
,One of the most difficult aspects of decision making is identifying the
!| !| !| !| !| !| !| !| !| !| !| !|
___________ or need. - Correct answer ✔problem !| !| !| !| !| !|
Good business questions relate to the five Ws and also answer the
!| !| !| !| !| !| !| !| !| !| !| !|
question _______. - Correct answer ✔Five W's - who, what, when,
!| !| !| !| !| !| !| !| !| !| !|
where, why !|
How
Questions like these call for answers that are __________, meaning
!| !| !| !| !| !| !| !| !| !|
verifiable or evidence-based. - Correct answer ✔empirical
!| !| !| !| !| !|
The first step of the decision making process is often subject to
!| !| !| !| !| !| !| !| !| !| !| !|
__________ errors, where people may identify and define a problem!| !| !| !| !| !| !| !| !| !|
too narrowly because they assume they know what the issue is. - Correct
!| !| !| !| !| !| !| !| !| !| !| !| !|
answer ✔framing !|
Decision _____________ are the options a decision maker considers
!| !| !| !| !| !| !| !| !|
before selecting a future course of action. - Correct answer ✔alternatives
!| !| !| !| !| !| !| !| !| !|
_____________ bias is the human tendency to seek, interpret, and !| !| !| !| !| !| !| !| !| !|
remember information that confirms preexisting beliefs. - Correct answer
!| !| !| !| !| !| !| !| !|
✔Confirmation
_______ refers to unprocessed facts and without some context it's
!| !| !| !| !| !| !| !| !| !|
meaningless. - Correct answer ✔Data !| !| !| !|
, _____________ is a collection of data that is converted into a form !| !| !| !| !| !| !| !| !| !| !| !|
that is meaningful or useful for the accomplishment of some objective. -
!| !| !| !| !| !| !| !| !| !| !| !|
Correct answer ✔Information !| !|
In general, organizations try to make relevant information available for
!| !| !| !| !| !| !| !| !| !|
decision making through __________-wide reporting, which is the use
!| !| !| !| !| !| !| !| !|
of knowledge management systems and informative updates across
!| !| !| !| !| !| !| !|
operations such that employees at every level of an organization can
!| !| !| !| !| !| !| !| !| !| !|
access the information that is relevant and necessary for their roles. -
!| !| !| !| !| !| !| !| !| !| !| !|
Correct answer ✔enterprise !| !|
When making big-bet decisions, dissenting opinions are crucial because
!| !| !| !| !| !| !| !| !|
of the high costs of making a bad decision.
!| !| !| !| !| !| !| !| !|
As a result, they often include a formal position known as a
!| !| !| !| !| !| !| !| !| !| !| !|
__________ ___________, which is a person assigned to make a !| !| !| !| !| !| !| !| !| !|
case against a decision-making team's proposal. - Correct answer ✔devil's
!| !| !| !| !| !| !| !| !|
advocate
!|
At the evaluation an analysis stage of decision making, teams may
!| !| !| !| !| !| !| !| !| !| !|
become subject to analysis ____________ - spending excessive time
!| !| !| !| !| !| !| !| !|
and energy in gathering information.
!| !| !| !|
Note: This is more common in big-bet decisions where cost of a wrong
!| !| !| !| !| !| !| !| !| !| !| !| !|
decision is high. - Correct answer ✔paralysis
!| !| !| !| !| !|
and Operations Management !| !| !|
(Module 3) exam with answers !| !| !| !|
A ____________ is a choice about a future action. - Correct answer
!| !| !| !| !| !| !| !| !| !| !| !|
✔decision
1) ____________ level: Strategic decisions focus on establishing and
!| !| !| !| !| !| !| !| !|
revising corporate goals and strategies.
!| !| !| !|
2) ____________ level: Business decisions focus on implementing
!| !| !| !| !| !| !| !|
corporate strategies for a division or business segment.
!| !| !| !| !| !| !|
3) ______________ level: Operational decisions focus on the day-to-
!| !| !| !| !| !| !| !|
day implementation of business-level strategies. - Correct answer ✔1)
!| !| !| !| !| !| !| !| !|
Corporate
2) Business
!|
3) Operational
!|
In efficient and effective organizations, decision makers at the business
!| !| !| !| !| !| !| !| !| !|
and operational levels are ____________ - in other words, they have
!| !| !| !| !| !| !| !| !| !| !|
the necessary authority and responsibility - to make decisions
!| !| !| !| !| !| !| !| !|
appropriate for their level in the company. - Correct answer
!| !| !| !| !| !| !| !| !| !|
✔empowered
,______ ______ decisions are infrequent decisions that can be made
!| !| !| !| !| !| !| !| !| !|
quickly at an individual level because the risks involved with these
!| !| !| !| !| !| !| !| !| !| !|
decisions are relatively small. - Correct answer ✔Ad hoc
!| !| !| !| !| !| !| !|
Big-_____ decisions are infrequent, unfamiliar decisions that can have
!| !| !| !| !| !| !| !| !|
a profound effect on a company's operations and future success.
!| !| !| !| !| !| !| !| !|
Ex: a merger or acquisition, a major shift in corporate strategy, a major
!| !| !| !| !| !| !| !| !| !| !| !| !|
capital purchase - Correct answer ✔bet
!| !| !| !| !|
Cross-_________ decisions are familiar decisions that can have broad !| !| !| !| !| !| !| !| !|
organizational impact. - Correct answer ✔cutting !| !| !| !| !|
Like ad hoc decisions, ___________ decisions are typically low risk
!| !| !| !| !| !| !| !| !| !|
but they involve familiar and frequent decisions. - Correct answer
!| !| !| !| !| !| !| !| !| !|
✔delegated
____________: general rules appropriate for certain situations. - !| !| !| !| !| !| !| !|
Correct answer ✔Heuristics !| !|
Heuristics are sometimes appropriate and useful in business operations,
!| !| !| !| !| !| !| !| !|
in particular for ____ ____ decisions that are low risk and low
!| !| !| !| !| !| !| !| !| !| !| !|
occurrence. - Correct answer ✔ad hoc !| !| !| !| !|
,One of the most difficult aspects of decision making is identifying the
!| !| !| !| !| !| !| !| !| !| !| !|
___________ or need. - Correct answer ✔problem !| !| !| !| !| !|
Good business questions relate to the five Ws and also answer the
!| !| !| !| !| !| !| !| !| !| !| !|
question _______. - Correct answer ✔Five W's - who, what, when,
!| !| !| !| !| !| !| !| !| !| !|
where, why !|
How
Questions like these call for answers that are __________, meaning
!| !| !| !| !| !| !| !| !| !|
verifiable or evidence-based. - Correct answer ✔empirical
!| !| !| !| !| !|
The first step of the decision making process is often subject to
!| !| !| !| !| !| !| !| !| !| !| !|
__________ errors, where people may identify and define a problem!| !| !| !| !| !| !| !| !| !|
too narrowly because they assume they know what the issue is. - Correct
!| !| !| !| !| !| !| !| !| !| !| !| !|
answer ✔framing !|
Decision _____________ are the options a decision maker considers
!| !| !| !| !| !| !| !| !|
before selecting a future course of action. - Correct answer ✔alternatives
!| !| !| !| !| !| !| !| !| !|
_____________ bias is the human tendency to seek, interpret, and !| !| !| !| !| !| !| !| !| !|
remember information that confirms preexisting beliefs. - Correct answer
!| !| !| !| !| !| !| !| !|
✔Confirmation
_______ refers to unprocessed facts and without some context it's
!| !| !| !| !| !| !| !| !| !|
meaningless. - Correct answer ✔Data !| !| !| !|
, _____________ is a collection of data that is converted into a form !| !| !| !| !| !| !| !| !| !| !| !|
that is meaningful or useful for the accomplishment of some objective. -
!| !| !| !| !| !| !| !| !| !| !| !|
Correct answer ✔Information !| !|
In general, organizations try to make relevant information available for
!| !| !| !| !| !| !| !| !| !|
decision making through __________-wide reporting, which is the use
!| !| !| !| !| !| !| !| !|
of knowledge management systems and informative updates across
!| !| !| !| !| !| !| !|
operations such that employees at every level of an organization can
!| !| !| !| !| !| !| !| !| !| !|
access the information that is relevant and necessary for their roles. -
!| !| !| !| !| !| !| !| !| !| !| !|
Correct answer ✔enterprise !| !|
When making big-bet decisions, dissenting opinions are crucial because
!| !| !| !| !| !| !| !| !|
of the high costs of making a bad decision.
!| !| !| !| !| !| !| !| !|
As a result, they often include a formal position known as a
!| !| !| !| !| !| !| !| !| !| !| !|
__________ ___________, which is a person assigned to make a !| !| !| !| !| !| !| !| !| !|
case against a decision-making team's proposal. - Correct answer ✔devil's
!| !| !| !| !| !| !| !| !|
advocate
!|
At the evaluation an analysis stage of decision making, teams may
!| !| !| !| !| !| !| !| !| !| !|
become subject to analysis ____________ - spending excessive time
!| !| !| !| !| !| !| !| !|
and energy in gathering information.
!| !| !| !|
Note: This is more common in big-bet decisions where cost of a wrong
!| !| !| !| !| !| !| !| !| !| !| !| !|
decision is high. - Correct answer ✔paralysis
!| !| !| !| !| !|
