QMb3602 Flashcards
EXAM 1
What is exploration in research?
A highly unstructured type of research that is less costly than new research. Managers define plausible actions and categorize them as feasible or not.
What is the anchoring trap in decision-making?
Giving disproportionate weight to the first information received.
How can you avoid the anchoring trap?
Take a different perspective, think before asking, seek input, and avoid anchoring others.
What is the status quo trap in decision-making?
The tendency to prefer staying the same even when better alternatives exist.
How can you avoid the status quo trap?
Consider your objectives, know your options, don’t exaggerate switching costs, and don’t settle.
What is the sunk cost trap?
Making decisions to justify past actions, even when they are no longer valid.
How can you avoid the sunk cost trap?
Involve outsiders, accept mistakes, and allow room for failure.
What is the confirming evidence trap?
Seeking information that supports one’s point of view while rejecting opposing information.
How can you avoid the confirming evidence trap?
Consider all evidence, find a devil’s advocate, and avoid people who always agree with you.
What is the framing trap?
The way a problem is stated influences decision outcomes.
How can you avoid the framing trap?
Always reframe, think in neutral terms, and challenge each other’s frames.
What is the overconfidence trap?
Trusting one’s own estimates too much.
How can you avoid the overconfidence trap?
Look at extremes, challenge those extremes, and question estimates.
What is the information overdose trap?
Failing to set limits on information, making it difficult to process relevant data.
How can you avoid the information overdose trap?
Set a time limit for information gathering and aim for 70% confidence.
What is the prudence trap?
Adjusting estimates excessively to be ‘on the safe side.’
How can you avoid the prudence trap?
Aim for accuracy and ask others to do the same.
What is the recallability trap?
Giving undue weight to recent dramatic events.
How can you avoid the recallability trap?
Examine assumptions and check the facts.
What are the three stakeholder perspectives?
- Ethical Perspective – Businesses should treat all stakeholders fairly.
- Separation Perspective – Managers should act in the best interest of shareholders.
- Integrated Perspective – Businesses operate in a stakeholder environment and must consider all stakeholders.
What is the DMAIC Model?
A structured problem-solving approach: Define, Measure, Analyze, Improve, Control.
What happens in the Define phase of the DMAIC model?
Identify the customer, issue, problem, opportunity, goals, resources, and timeline.
What happens in the Measure phase of the DMAIC model?
Establish metrics and measure baseline performance.
What happens in the Analyze phase of the DMAIC model?
Compare current performance to the goal, identify variations, and investigate root causes.
What happens in the Improve phase of the DMAIC model?
Develop gap-closure actions, test, and implement changes based on root cause analyses.
What happens in the Control phase of the DMAIC model?
Standardize improvements to sustain gains.
What is the 80/20 rule?
80% of outcomes come from 20% of causes.
What is the 5 Why’s method?
Asking ‘why?’ multiple times to dig deeper into the root cause of a problem.
What is the Fishbone Analysis?
A cause-and-effect diagram used to identify root causes of problems.
What is descriptive analytics?
Gathering, organizing, and visualizing data to summarize past events (‘what has happened?’).
What is predictive analytics?
Using historical data to predict future outcomes (‘what could happen?’).
What is prescriptive analytics?
Using optimization and simulation algorithms to determine the best course of action (‘what should we do?’).
What are the 5 V’s of big data?
Volume, Velocity, Variety, Veracity, and Value.
What is a population in statistics?
All items of interest in a statistical problem.
What is a sample in statistics?
A subset of the population used for analysis.
What is cross-sectional data?
Data collected at a single point in time.
What is the difference between primary, secondary, and tertiary data?
- Primary Data: Collected directly and unprocessed.
- Secondary Data: Contains at least one level of interpretation of primary data.
- Tertiary Data: Indexes, bibliographies, and finding aids.
How do you determine the credibility of a secondary source?
Evaluate using a five-factor process: Purpose, Scope, Authority, Audience, and Format.
What are decision variables?
Quantifiable characteristics used for decision-making, such as sales projections or reducing turnover costs.
Ad Hoc
Means “for this specific purpose”
Identifies patterns or trends in data
Expo Facto
Means “after the fact”
Research method that examines the causal relationship between independent and dependent variables when the researcher cannot control the independent variables.
Tobias Smith is working with his company’s data to examine inventory information. His intent is to use the variable to express ratios on inventory turnover. Based on this description, what is the strongest level of measurement being used?
Ratio scale
The time in hours spent sleeping per day is what kind of variable?
Continuous numerical
Molly Nelson has been collecting temperatures in degrees Fahrenheit, daily over the past five spring season, to determine the optimal point to plant her heirloom tomatoes. Because the difference between each degree is the same, irrelevant of the temperature, this is what type of measurement?
Interval
In big data, the most important aspect of any analytic initiative is ___.
Value
What term refers to the credibility and quality of data?
Veracity
When compiling data, it is important to know data comes in all types, forms, and granularity. This is known as:
Variety
In a New York Times article, calls are being mounted to ease tech’s grip on personal data. The concern is that a handful of companies hold most of the data. The immense amount of data is called:
Volume
Types of Management Questions:
Evaluation of Solution:
How can we achieve the objectives we set?
Choice of Purpose:
What do we want to achieve?
Troubleshooting:
Why is our program not meeting its goals?
Control:
How well is our program meeting its goals?
How can you address out-of-range data entry errors?
By clarifying the research question and ensuring ethical research design.
