D312 Exam 2 Prep: Questions with 100% correct
answers
Rational Decision Makeing
- based on assumptions about how a decision should be made
- Optimal Choice between alternative
Rational Decision Making Steps
1. Problem definition
2. Decision Criteria
3. Weigh the criteria
4. Identify alternatives
5. Evaluate alternatives
6. Select optimal solution
Cultural differences in optimization model
- doing cultures can better identify problems than being cultures
- amount of information a person considers is culturally bound
- Who makes the decision (top down vs consensus)
- cultures orientation toward time influences pace of decision
Limits to Rationality
- individual judgement is restricted in its ability to be rational due to incomplete information
- they result to the Satisficing Model
Satisficing Model
, Decision-makers do not evaluate all possible alternatives but search for a solution that meets a
minimally satisfactory set of criteria
Conflict Model
decision-makers use one of four decision styles to cope with the psychological stress of making a
decision
1. Vigilance - careful and thorough
2. Complacency - ignore the decision or take first option
3. Defensive Avoidance - pass the decision off to someone else, put it off, or devalue it
4. Hypervigilance - panicking, making hasty and ill-conceived decision
Heuristics
- rules of thumb
- simplify decision making
- may result in biases
3 General Heuristics
- Availability
- Representativeness
- Anchoring and adjustment
availability heuristic
estimating the likelihood of events based on their availability in memory; if instances come
readily to mind (perhaps because of their vividness), we presume such events are common
representativeness heuristic
answers
Rational Decision Makeing
- based on assumptions about how a decision should be made
- Optimal Choice between alternative
Rational Decision Making Steps
1. Problem definition
2. Decision Criteria
3. Weigh the criteria
4. Identify alternatives
5. Evaluate alternatives
6. Select optimal solution
Cultural differences in optimization model
- doing cultures can better identify problems than being cultures
- amount of information a person considers is culturally bound
- Who makes the decision (top down vs consensus)
- cultures orientation toward time influences pace of decision
Limits to Rationality
- individual judgement is restricted in its ability to be rational due to incomplete information
- they result to the Satisficing Model
Satisficing Model
, Decision-makers do not evaluate all possible alternatives but search for a solution that meets a
minimally satisfactory set of criteria
Conflict Model
decision-makers use one of four decision styles to cope with the psychological stress of making a
decision
1. Vigilance - careful and thorough
2. Complacency - ignore the decision or take first option
3. Defensive Avoidance - pass the decision off to someone else, put it off, or devalue it
4. Hypervigilance - panicking, making hasty and ill-conceived decision
Heuristics
- rules of thumb
- simplify decision making
- may result in biases
3 General Heuristics
- Availability
- Representativeness
- Anchoring and adjustment
availability heuristic
estimating the likelihood of events based on their availability in memory; if instances come
readily to mind (perhaps because of their vividness), we presume such events are common
representativeness heuristic
