MGMT 371 FINAL TEST
QUESTIONS AND COMPLETE
SOLUTIONS GRADED A+
Your Exam Plug
, In class I gave a variety of examples of how people could "program" their decision (i.e., various
procedures or approaches they could use to help them choose if they're indecisive or that people use to
make sure they do put enough thought into a decision). Describe THREE of these. - Answer: One
example is to make a checklist. This allows them to stick to the task they have written down. Another
example is habits. When people tend to do tasks over and over, it becomes a habit. Lastly, clerical
routines can be used daily by managers and other positions to keep themselves on track.
2. Describe what the concept of the METADECISION refers to, and list TWO specific questions that
illustrate this concept. ----finish---- - Answer: A metadecsion is the choices that are made initially bout
the decision-making process itself.
Explain the concept of "satisficing" AND discuss why people don't ordinarily choose "the best" option. -
Answer: Satisficing is choosing the solution that is good enough. People don't ordinarily choose the best
option because-----
Ben Franklin's Decision-Making Method of Moral Algebra is a way to increase the rationality of one's
decisions. Explain TWO specific features of the process that help to do this, AND state what human
limitation(s) these two features of the approach help to overcome. - Answer: The first step the student
should do is make a pros and cons list. -------
A class handout gave a real-world example of "anchoring and adjustment" by realtors. Explain what
happened in that example AND how it illustrates anchoring and adjustment. - Answer: Real estate
agents were given a packet of information that contained everything they need to know about the
neighborhood the last 6 months. Then, hald of the agent swere given a low price for a house, then went
to vist. The other half was given a high price, and went to visit as well. In the end, the estimatesrs were
$6,000 apart. This represents anchoring and adjustment because the agents were all given the same
reference point to begin. Then, the anchor was adjusted for low/high listing prices. As a result, the
agents given the low anchor had a low estimate. The high anchor the agents were given, resulted in a
high estimated listing price.
Explain what the CONJUNCTION FALLACY refers to, AND state what happens to the likelihood of an
event when you specify that particular event in greater detail. - Answer: The conjunction fallacy refers to
the more information and detail you learn about a possibility, the less it becomes possible.
A random survey of doctors finds that they all believe they are "above average" relative to non-doctors.
Why doesn't this reflect the Lake Wobegon Effect, AND how would you change it so that it would
illustrate the bias? - Answer: This doesn't reflect the Lake Wobegon effect because they are -------. I
QUESTIONS AND COMPLETE
SOLUTIONS GRADED A+
Your Exam Plug
, In class I gave a variety of examples of how people could "program" their decision (i.e., various
procedures or approaches they could use to help them choose if they're indecisive or that people use to
make sure they do put enough thought into a decision). Describe THREE of these. - Answer: One
example is to make a checklist. This allows them to stick to the task they have written down. Another
example is habits. When people tend to do tasks over and over, it becomes a habit. Lastly, clerical
routines can be used daily by managers and other positions to keep themselves on track.
2. Describe what the concept of the METADECISION refers to, and list TWO specific questions that
illustrate this concept. ----finish---- - Answer: A metadecsion is the choices that are made initially bout
the decision-making process itself.
Explain the concept of "satisficing" AND discuss why people don't ordinarily choose "the best" option. -
Answer: Satisficing is choosing the solution that is good enough. People don't ordinarily choose the best
option because-----
Ben Franklin's Decision-Making Method of Moral Algebra is a way to increase the rationality of one's
decisions. Explain TWO specific features of the process that help to do this, AND state what human
limitation(s) these two features of the approach help to overcome. - Answer: The first step the student
should do is make a pros and cons list. -------
A class handout gave a real-world example of "anchoring and adjustment" by realtors. Explain what
happened in that example AND how it illustrates anchoring and adjustment. - Answer: Real estate
agents were given a packet of information that contained everything they need to know about the
neighborhood the last 6 months. Then, hald of the agent swere given a low price for a house, then went
to vist. The other half was given a high price, and went to visit as well. In the end, the estimatesrs were
$6,000 apart. This represents anchoring and adjustment because the agents were all given the same
reference point to begin. Then, the anchor was adjusted for low/high listing prices. As a result, the
agents given the low anchor had a low estimate. The high anchor the agents were given, resulted in a
high estimated listing price.
Explain what the CONJUNCTION FALLACY refers to, AND state what happens to the likelihood of an
event when you specify that particular event in greater detail. - Answer: The conjunction fallacy refers to
the more information and detail you learn about a possibility, the less it becomes possible.
A random survey of doctors finds that they all believe they are "above average" relative to non-doctors.
Why doesn't this reflect the Lake Wobegon Effect, AND how would you change it so that it would
illustrate the bias? - Answer: This doesn't reflect the Lake Wobegon effect because they are -------. I
