Chapter 2

Question 1

_____ are tools that help choose between several courses of action or alternatives.

Answer 1

Decision Trees

Question 2

Group process using written responses

Answer 2

Delphi Technique

Question 3

principle of insufficient reason; all states of nature are equally likely (highest average)

Answer 3

Decision maker

Question 4

The ideal situation for making decisions is one of _____, that is, a situation in which a manager can make accurate decisions because the outcome of every alternative is known.

Answer 4

certainty

Question 5

A qualitative tool and technique can be used for making better decisions in identifying the disadvantages and advantages of a given alternative solution.

Answer 5

SWOT

Question 6

____ also called as nonroutine decisions are unique and nonrecurring, often involving incomplete knowledge, high uncertainty, and the use of subjective judgment or even intuition, where no alternative can be proved to be the best possible solution to the particular problem.

Answer 6

Nonprogrammed decisions

Question 7

Also known as routine decisions involve standard decision procedures, and entail a minimum of uncertainty.

Answer 7

Well-Structured Problems and Programmed Decisions.

Question 8

___ the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.

Answer 8

Decision making

Question 9

The decision maker is able to estimate the likelihood of certain alternatives or outcomes.

Answer 9

Risk

Question 10

___ according to Nickels and others, “is the heart of all the management functions”.

Answer 10

Decision making

Question 11

maximax choice (maximizing the maximum possible payoff)

Answer 11

Optimistic manager

Question 12

Decisions which involve regular survey of the market are _____ and decisions made under situations of crisis or emergency are crisis — intuitive decisions.

Answer 12

Research decisions

Question 13

Decisions are taken in unstructured situations which reflect novel, ill-defined and complex problems.

Answer 13

Poorly Structured Problems and Nonprogrammed Decisions.

Question 14

opportunity loss (regret)

Answer 14

Minimax approach

Question 15

A _____ can be used by a manager to graphically represent which actions could be taken and how these actions relate to future events.

Answer 15

decision tree

Question 16

____ plays vital importance in the functioning of an organization

Answer 16

decision making

Question 17

Decisions are taken as a matter of routine. It relates to daily operations and aims to achieve short-term objectives of the firm.

Answer 17

Operational decisions

Question 18

According to the Oxford Advanced Learner’s Dictionary the term _____ means - the process of deciding about something important, especially in a group of people or in an organization.

Answer 18

decision making

Question 19

In such condition of ______, the decision maker can choose among several possible approaches for making the decision.

Answer 19

uncertainty

Question 20

These decisions reflect foresightedness. Managers forecast opportunities to promote organizational growth.

Answer 20

Opportunity decisions

Question 21

It is a statistical technique in decision making also known as the 80/20 rule that is used for the selection of a limited number of tasks that produce significant overall effect.

Answer 21

Pareto Analysis

Question 22

A _____ activity that pervades all other activities pertaining to the organization.

Answer 22

continuous and dynamic

Question 23

One common technique for decision making under certainty is called ______.

Answer 23

linear programming

Question 24

Weighs benefits of an input or activity against the costs

Answer 24

Marginal Analysis

Question 25

____ describes a series of steps that decision makers should consider if their goal is to maximize the quality of their outcomes.

Answer 25

Rational decision-making

Question 26

Generally used in financial management

Answer 26

Payback Analysis

Question 27

maximin choice (maximizing the minimum possible payoff)

Answer 27

Pessimistic manager

Question 28

_____ is the process of making a conscious choice between two or more rational alternatives in order to select the one that will produce the most desirable consequences (benefits) relative to unwanted consequences (costs).

Answer 28

Managerial decision making

Question 29

Depending on the nature of the problem, the engineer manager can use different types of decisions:

Answer 29

Well-Structured Problems and Programmed Decisions.
Poorly Structured Problems and Nonprogrammed Decisions.

Question 30

When dealing with multiple choices and variables, a _____ can bring clarity to the disarray.

Answer 30

decision matrix

Question 31

Decisions taken in interest of the organization.

Answer 31

Organizational decisions