BMGT 364 Quiz 2 - Questions and Answers

BMGT 364 Quiz 2 - Questions and Answers What is anchoring bias? Anchoring is fixating on initial information as a starting point and failing to adequately adjust for subsequent information. What is confirmation bias? Confirmation bias is a type of selective perception where you seek out info that reaffirms your past choices, while discounting info that contradicts past judgments What is availability bias? Availability bias is the tendency for people to base judgments on info that is readily available. What is escalation of commitment? Escalation of commitment means staying with a decision even when there is clear evidence that it is wrong. What is randomness error? Randomness error is believing one can predict an outcome based on random events. What is risk aversion? Risk aversion is sticking to an established way rather than taking a chance on innovative/creative methods. What is hindsight bias? Hindsight bias is the tendency to believe falsely that one has accurately predicted the outcome of an event, after that outcome is already known. What are the symptoms of Groupthink? -Invulnerability -Rationale -Morality -Stereotype -Pressure -Self-censorship -Illusion of Unanimity -Mindguards What are the products of poor decision-making due to groupthink? -Group limits its discussion to only a few alt courses of action -Group does not reexamine initial majority's course of action -little time is spent addressing overlooked issues or rejected alternatives -There is no attempt for the group to obtain info from experts -Interest is shown only in facts and opinions that support one's ideas -No contingency plans developed What are the 5 steps in the Rational Decision-Making Model? 1. Define the problem 2. Identify the decision criteria 3. Allocate weights to the criteria 4. Develop the alternatives 5. Evaluate the alternatives What is