Understanding Management Decision-making

Question 1

Define intuition

Answer 1

The ability to have a grasp on a situation or information without the need for conscious reading

Question 2

What is the process for intuition in decision making

Answer 2

The process by which information acquired through associated learning and stored in long-term memory is accessed unconsciously to form the basis of a judgement or decision

Question 3

What is the process of scientific decision making?

Answer 3

The scientific process of making decisions based on evidence and data by adopting a systematic approach, instead or decisions based on intuition or trial-and-error

Question 4

What is the difference between scientific decision making and intuitive decision making?

Answer 4

Information processing is used by scientific decision making and is methodical and analytical, whereas intuitive relies more on a practitioner’s perception

Question 5

What are the advantages and disadvantages of using decision trees?

Answer 5

Advantages: interpretability, ability to handle unbalanced data, variable selection, handling missing values and its non-parametric nature
Disadvantages: overfitting, sensitivity to small variations and biased learning

Question 6

What influences decision making?

Answer 6

Values: decisions that match your values are more lively to be the right choices for you.
Emotions: positive emotions can lead to risk-taking behaviour, while negative emotions tend to be more risk aware.