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Question

101.__________ are used to weight the criteria in the rational decision-making model (i.e., decide which criteria are more or less important).

a.Dictionary rules

b.Minimum threshold rules

c.Formalized heuristics

d.Absolute comparisons

e.All of these

102.With __________, each decision criterion is compared to a standard or ranked on its own merits.

a.absolute comparisons

b.relative comparisons

c.valences

d.minimum threshold rule

e.comparative ranking scales

103.Which step in the rational decision-making model often takes much longer and is much more expensive than the other steps?

a.defining the problem

b.identifying decision criteria

c.evaluating each alternative

d.computing the optimal decision

e.determining the satisficing solution

104.As a company that manufactures janitorial cleaning supplies tries to develop more environmentally friendly products that can clean as well as its current ones, the company’s manager must assess various alternatives derived from oranges, parsley, lemon, or a combination of these ingredients. This is the __________ step in the rational decision-making model.

a.generate alternative courses of action

b.evaluate each alternative

c.compute the optimal decision

d.satisfice each alternative

e.bounded rationality

105.When Coca-Cola discovered it had an unauthorized bottler selling Coke in the Colombian jungle, it used the rational decision-making process to find a solution. What do you know about the stage in which Coca-Cola evaluated its possible courses of action?

a.Coca-Cola found this stage to be the least expensive of all the stages.

b.Coca-Cola found this stage to be the most time-consuming of all the stages.

c.This stage was the last stage in the process for Coca-Cola.

d.The stage required Coca-Cola to use complex mathematical models.

e.None of these statements accurately describe this stage.

106.The final step in the rational decision-making process is computing the optimal decision by determining:

a.each alternative’s optimal value

b.each alternative’s average value

c.the weights associated with each criterion

d.the averages associated with each criterion

e.the valence of each alternative

107.In the final step of the rational decision-making model, __________ are used to compute __________.

a.criterion weights; the average value for each alternative

b.criterion ratings and weights; the average value for each alternative

c.criterion ratings; the optimal value for each alternative

d.criterion ratings and weights; the optimal value for each alternative

e.optimal valences; criterion ratings

108.In the rational decision-making process, each alternative’s optimal value is determined by __________ the rating for each criterion __________, and then summing those scores for each alternative course of action.

a.dividing; by a weighted percentage

b.multiplying; by the average of all criteria

c.subtracting; from the rating for the adjacent criteria

d.adding; to the weight for that criterion

e.multiplying; by the weight for that criterion

109.Which of the following statements about rational decision making is true?

a.In general, managers do not need to complete all six steps of the rational decision-making model to make effective decisions.

b.Rational decision making is not done on a strategic or tactical level.

c.The rational decision-making model describes the way decisions should be made.

d.Bounded rationality does not influence how managers actually make decisions.

e.All of these statements about rational decision making are true.

110.Which of the following statements about rational decision making is true?

a.In general, managers who diligently complete all six steps of the rational decision-making model will make better decisions than those who don’t.

b.Rational decision making can help managers choose optimal solutions that provide maximum benefits to their organizations.

c.The rational decision-making model describes the way decisions should be made.

d.The way in which managers actually make decisions is more accurately described as bounded (or limited) rationality.

e.All of these statements about rational decision making are true.