Elaine Allen just made a decision about where to invest money that she inherited. She put it
into a bank certificate of deposit because that is where she has always put her savings, and
she is very concerned about the safety of her investment. She was not aware of another
investment that is just as safe and that pays a higher return. Elaine is a victim of bounded
rationality.
Indicate whether the statement is true or false.
Question 2Escalation of commitment is selecting the first minimally acceptable alternative rather than
making a thorough search for the best alternative.
Indicate whether the statement is true or false.
Question 3The behavioral model of decision making assumes that the manager has imperfect
information.
Indicate whether the statement is true or false.
Question 4F According to your textbook, frustration is one of the stages of creativity.
Indicate whether the statement is true or false.
Question 5Mel Hanna has to make a decision that could bankrupt the company if he is wrong. To make
matters worse, Mel does not even know all his alternatives and has no idea how likely some
of the conditions surrounding known alternatives are to occur. Mel is operating under the
decision-making condition known as risk.
Indicate whether the statement is true or false.
Question 6If a manager makes a decision and has a computer program written to embody the decision,
the manager is apparently dealing with a programmed decision.
Indicate whether the statement is true or false.
Question 7Programmed decisions are used primarily to deal with unique, one-of-a-kind situations.
Indicate whether the statement is true or false.
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