, Chapterh1hIntroductionhtohManagerialhDecisionhMaking
Multiplehchoice
1) Anhoptimalhsearchhforhalternativeshshouldhlast:
a. Ashlonghashneededhtohfindhthehbesthsolution.
b. Ashlonghashneededhtohfindhthehfirsthgoodhenoughhsolution.
c. Ashlonghashthehcosthofhthehsearchhdoeshnothoutweighhthehvaluehofhthehaddedhinformation.
d. Ashlonghashthehcosthofhthehsearchhishwithinhthehappropriatehlimitshsethbyhthehdecisionh
maker.hAns:hc
Response:hp.h2-3
2) Ratinghalternativeshonheachhofhthehdecisionhcriteriahishconsideredhthehmosthdifficulthstageh
ofhthehdecision-makinghprocess,hbecause:
a. Ithassumeshwehhavehpreciselyhdefinedhourhpriorities.
b. Ithrequireshushtohforecasthhowheachhalternativehsolutionhwillhachieveheachhofhourhde
cisionhcriteria.
c. Ithrequireshushtohcomparehallhofhthehalternativeshsimultaneously.
d. Ithishlikelyhtohfailhifhourhproblemhishnothdefinedhcorrectly,handhthishfailurehwillhnothbehde
tected.hAns:hb
Response:hp.h3
3) Inhthehinterplayhbetweenhsystemh1handhsystemh2hthinking,hthehkeyhgoalhforhmanagershis:
a. Tohimprovehtheirhusehofhsystemh1hthinking.
b. Tohattempthtohusehsystemh2hthinkinghashmuchhashpossible.
c. Tohapplyhbothhsystemshinhmakinghdecisionshinhorderhtohperformhahmorehthoroug
hhandhcomplexhsearchhforhalternatives.
d. Tohidentifyhwhenhtheyhshouldhmovehfromhsystemh1htohsystemh2hthinking.h
Ans:hdhResponse:hp.h4
, 4) Whichhofhthehfollowinghishahtypicalhcharacteristichofhheuristics?
a. Theyhprovidehushwithhahsimplehwayhofhdealinghwithhcomplexhproblems.
b. Theyhhavehthehbesthlikelihoodhofhreachinghanhoptimalhsolutionhtohahproblem.
c. Theyharehtimehandhresourcehconsuming.
d. Theyharehusedhmainlyhbyhirrationalhdecisionhmakers.
Ans:hahRespo
nse:hp.h6
Questionsh5-
8hdescribehexampleshofhheuristicshoutlinedhinhthehchapter.hForheachhquestion,hindicatehwhichhheurist
ichithdescribes:
a. Thehrepresentativenesshheuristic.
b. Thehavailabilityhheuristic.
c. Thehconfirmationhheuristic.
d. Thehaffecthheuristic.
5) InnerhcityhcrimehinhthehU.S.hgetshconsiderablehmediahcoverage,hsuchhthatheveryhhomicidehish
reportedhinhthehnews.hInhcontrast,hahstoryhofhahpersonhwhohdiedhfromhahhearthattackhrarely
hmakeshthehnews.hThishleadshpeoplehtohoverestimatehthehfrequencyhofhdeathshduehtohhomici
deshrelativehtohthosehduehtohhearthfailure.
Ans:h bhRespons
e:hp.h7-8
6) Johnhishoverhsevenhfeethtall.hWhenhaskedhwhetherhJohnhishahprofessionalhbasketballhplay
erhorhahsoftwarehprogrammer,hmanyhpeoplehpredicththehformer,hevenhthoughhtherehareh
manyhmorehsoftwarehprogrammers,hevenhveryhtallhones,hthanhprofessionalhbasketballhpla
yers. Ans:ha
Response:hp.h8-9
, 7) Afterhreadinghabouththehpositiveheffecthchocolatehhashonhstudenthperformance,hahteacherhgi
vesheachhstudenthinhahclasshahchocolatehbarhbeforehtakinghanhexam.h15houthofh22hstudentshi
nhthathclasshgethanhAhonhthehexam.hThehteacherhthereforehconcludeshthathchocolatehenhance
shperformance.hAns:hc
Response:hp.h9-10
8) Ahcommonhwisdomhinhpoliticshishthaththehmorehanhargumenthishrepeated,hthehmorehith
willhbehconsideredhbyhthehpublichashreliablehandhtrue.
Ans:h bhRespons
e:hp.h7-8
9) Thehaffecthheuristichcanhexplainhwhy
a. PeoplehwhohlivehinhCaliforniaharehassumedhtohbehhappierhthanhpeoplehwhohliveh
inhthehMidwest.
b. Studentshpredicththeyhwillhbehsadderhafterhgettinghahbadhgradehonhahtesththa
nhtheyhactuallyharehinhthesehsituations.
c. Peoplehdohnothrememberhsadheventshfromhtheirhearlyhchildhood.
d. Stockhpriceshgohuphonhsunnyhdays.
Ans:hdhRespon
se:hp.h10
True/False
10) Succumbinghtohheuristicshishinevitable,handhtherehishnohwayhtohmakehjudgmenthlesshproneh
them.hRather,honehcanhonlyhbehawarehofhthehbiasingheffecthheuristicshhavehonhone’shjudgm
ent.
Ans:hFalsehRes
ponse:hp.h11
Multiplehchoice
1) Anhoptimalhsearchhforhalternativeshshouldhlast:
a. Ashlonghashneededhtohfindhthehbesthsolution.
b. Ashlonghashneededhtohfindhthehfirsthgoodhenoughhsolution.
c. Ashlonghashthehcosthofhthehsearchhdoeshnothoutweighhthehvaluehofhthehaddedhinformation.
d. Ashlonghashthehcosthofhthehsearchhishwithinhthehappropriatehlimitshsethbyhthehdecisionh
maker.hAns:hc
Response:hp.h2-3
2) Ratinghalternativeshonheachhofhthehdecisionhcriteriahishconsideredhthehmosthdifficulthstageh
ofhthehdecision-makinghprocess,hbecause:
a. Ithassumeshwehhavehpreciselyhdefinedhourhpriorities.
b. Ithrequireshushtohforecasthhowheachhalternativehsolutionhwillhachieveheachhofhourhde
cisionhcriteria.
c. Ithrequireshushtohcomparehallhofhthehalternativeshsimultaneously.
d. Ithishlikelyhtohfailhifhourhproblemhishnothdefinedhcorrectly,handhthishfailurehwillhnothbehde
tected.hAns:hb
Response:hp.h3
3) Inhthehinterplayhbetweenhsystemh1handhsystemh2hthinking,hthehkeyhgoalhforhmanagershis:
a. Tohimprovehtheirhusehofhsystemh1hthinking.
b. Tohattempthtohusehsystemh2hthinkinghashmuchhashpossible.
c. Tohapplyhbothhsystemshinhmakinghdecisionshinhorderhtohperformhahmorehthoroug
hhandhcomplexhsearchhforhalternatives.
d. Tohidentifyhwhenhtheyhshouldhmovehfromhsystemh1htohsystemh2hthinking.h
Ans:hdhResponse:hp.h4
, 4) Whichhofhthehfollowinghishahtypicalhcharacteristichofhheuristics?
a. Theyhprovidehushwithhahsimplehwayhofhdealinghwithhcomplexhproblems.
b. Theyhhavehthehbesthlikelihoodhofhreachinghanhoptimalhsolutionhtohahproblem.
c. Theyharehtimehandhresourcehconsuming.
d. Theyharehusedhmainlyhbyhirrationalhdecisionhmakers.
Ans:hahRespo
nse:hp.h6
Questionsh5-
8hdescribehexampleshofhheuristicshoutlinedhinhthehchapter.hForheachhquestion,hindicatehwhichhheurist
ichithdescribes:
a. Thehrepresentativenesshheuristic.
b. Thehavailabilityhheuristic.
c. Thehconfirmationhheuristic.
d. Thehaffecthheuristic.
5) InnerhcityhcrimehinhthehU.S.hgetshconsiderablehmediahcoverage,hsuchhthatheveryhhomicidehish
reportedhinhthehnews.hInhcontrast,hahstoryhofhahpersonhwhohdiedhfromhahhearthattackhrarely
hmakeshthehnews.hThishleadshpeoplehtohoverestimatehthehfrequencyhofhdeathshduehtohhomici
deshrelativehtohthosehduehtohhearthfailure.
Ans:h bhRespons
e:hp.h7-8
6) Johnhishoverhsevenhfeethtall.hWhenhaskedhwhetherhJohnhishahprofessionalhbasketballhplay
erhorhahsoftwarehprogrammer,hmanyhpeoplehpredicththehformer,hevenhthoughhtherehareh
manyhmorehsoftwarehprogrammers,hevenhveryhtallhones,hthanhprofessionalhbasketballhpla
yers. Ans:ha
Response:hp.h8-9
, 7) Afterhreadinghabouththehpositiveheffecthchocolatehhashonhstudenthperformance,hahteacherhgi
vesheachhstudenthinhahclasshahchocolatehbarhbeforehtakinghanhexam.h15houthofh22hstudentshi
nhthathclasshgethanhAhonhthehexam.hThehteacherhthereforehconcludeshthathchocolatehenhance
shperformance.hAns:hc
Response:hp.h9-10
8) Ahcommonhwisdomhinhpoliticshishthaththehmorehanhargumenthishrepeated,hthehmorehith
willhbehconsideredhbyhthehpublichashreliablehandhtrue.
Ans:h bhRespons
e:hp.h7-8
9) Thehaffecthheuristichcanhexplainhwhy
a. PeoplehwhohlivehinhCaliforniaharehassumedhtohbehhappierhthanhpeoplehwhohliveh
inhthehMidwest.
b. Studentshpredicththeyhwillhbehsadderhafterhgettinghahbadhgradehonhahtesththa
nhtheyhactuallyharehinhthesehsituations.
c. Peoplehdohnothrememberhsadheventshfromhtheirhearlyhchildhood.
d. Stockhpriceshgohuphonhsunnyhdays.
Ans:hdhRespon
se:hp.h10
True/False
10) Succumbinghtohheuristicshishinevitable,handhtherehishnohwayhtohmakehjudgmenthlesshproneh
them.hRather,honehcanhonlyhbehawarehofhthehbiasingheffecthheuristicshhavehonhone’shjudgm
ent.
Ans:hFalsehRes
ponse:hp.h11
