________ is a situation in which a decision maker cannot make reasonable probability estimates.
Question 2Ian is a plant manager in a multi-site corporation. He often deals with situations involving new customers and new products. These are often ________.
Question 3________ is a situation where a manager has the ability to make accurate decisions because the outcome of every alternative is known.
Question 4What is meant by bounded rationality and satisficing?
What will be an ideal response?
Question 5Briefly, discuss the assumptions of rationality and the validity of those assumptions.
What will be an ideal response?
Question 6One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.
Indicate whether the statement is true or false.
Question 7The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.
Indicate whether the statement is true or false.
Question 8According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information.
Indicate whether the statement is true or false.
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