MGT 321 RAE Chapter 7 Questions And Correct Answers

Bounded Rationality - the view that people are bounded in their decision-making capabilities, including access to limited information, limited information processing, and tendency toward satisficing rather than maximizing when making choices Cognitive Dissonance - an emotional experience caused by a perception that our beliefs, feelings, and behavior are incongruent with one another Divergent Thinking - reframing a problem in a unique way and generating different approaches to the issue Escalation of Commitment - the tendency to repeat an apparently bad decision or allocate more resources to a failing course of action Heuristics - shortcut strategies or guidelines that suggest a solution to a problem but do not guarantee an answer Implicit Favorite - a preferred alternative that the decision maker uses repeatedly as a comparison with other choices Intuition - the ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning anchoring and adjustment heuristic - a natural tendency for people to be influenced by an initial anchor point such that they do not sufficiently move away from that point as new information is provided availability heuristic - a natural tendency to assign higher probabilities to objects or events that are easier to recall from memory, even though ease of recall is also affected by nonprobability factors (e.g., emotional response, recent events) representativeness heuristic - a natural tendency to evaluate probabilities of events or objects by the degree to which they resemble (are representative of) other events or objects rather than on objective probability information