Ch_18_BIASES_IN_MANAGERIAL_DECISION_MAKING. All Answers

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1. If less relevant information is presented in an interesting manner, it tends to have a greater impact on final decisions than if presented in a dry manner. a. True b. False ANSWER: POINTS: Tr... ue 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 2. In the context of a sea of numbers, verbal information will usually get lost because of the salience effect. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 3. Information that is emotionally interesting (vs. uninteresting) is more likely to be vivid for the decision maker. a. True b. False ANSWER: POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 4. Concrete information has less impact on our decisions than abstract information. a. True b. False NATIONAL STANDARDS: STATE STANDARDS: TOPICS: United States- BUSPROG: Analytic United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy KEYWORDS: Bloom's: Comprehension ANSWER: POINTS: False 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 5. Short-term profits are less vivid and attention-drawing than long-term profits. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 6. The assimilation effect occurs when very different objects or issues are compared and judgments of the target object is displaced away from the reference point. a. True b. False ANSWER: POINTS: False 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 7. Due to the assimilation effect, we tend to agree too readily with similar others. a. True b. False ANSWER: POINTS: True 1 NATIONAL STANDARDS: STATE STANDARDS: TOPICS: United States- BUSPROG: Analytic United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy KEYWORDS: Bloom's: Knowledge DIFFICULTY: Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 8. According to the contrast effect, when outcomes are framed in terms of gains, people are risk-averse. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 9. When outcomes are framed in terms of losses, people are risk-seeking. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: STATE STANDARDS: TOPICS: United States- BUSPROG: Analytic United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy KEYWORDS: Bloom's: Knowledge 10. When losses loom larger than gains, people have loss aversion. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 11. Diagnosticity depends on the extent to which information implies one hypothesis over another hypothesis. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 12. Managers experience the pseudodiagnosticity effect any time they treat irrelevant information as relevant. a. True b. False ANSWER: POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: STATE STANDARDS: TOPICS: United States- BUSPROG: Analytic United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy KEYWORDS: Bloom's: Knowledge 13. Focusing only on one possibility and ignoring other possibilities is known as the common knowledge effect. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Easy LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 14. Group polarization is the opposite of groupthink. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 15. Simplifying strategies are ineffective in reducing the amount of cognitive effort required to reach a judgment. a. True b. False ANSWER: POINTS: False 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.02- 18.02 NATIONAL STANDARDS: STATE STANDARDS: TOPICS: United States- BUSPROG: Analytic United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy KEYWORDS: Bloom's: Knowledge 16. The representativeness heuristic influences causal judgments as well as judgments of category membership. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 17. Sample size is paid insufficient attention to when people rely heavily on the representativeness heuristic. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 18. Intuitive judgments made on the basis of the representativeness heuristic tends to be non-regressive. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 19. After launching several new product failures, Bill believes he is "due"for a success. Bill is experiencing the gambler's fallacy. a. True b. False ANSWER: POINTS: True 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 20. Information quality is determined by two factors: reliability and recentcy. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 21. Information that doesn't fluctuate is said to be reliable. a. True b. False ANSWER: POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 22. The availability heuristic is based on similarity judgments. a. True b. False ANSWER: POINTS: False 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 23. Basing predictions on memory usually leads to very accurate predictions. a. True b. False ANSWER: POINTS: False 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.15.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 24. Anchors rarely influence expert decision makers. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 25. A gamble has two components -an outcome and a probability. a. True b. False ANSWER: True POINTS: I DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Strategy Bloom's: Knowledge 26. In preference reversal, subjects prefer one gamble when they anchor on outcomes and another when they anchor on probabilities. a. True b. False ANSWER: POINTS: DIFFICULTY: True I Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Strategy Bloom's: Knowledge 27. Managers usually are able to express their opinions of job-related topics, despite situational pressures. a. True b. False ANSWER: POINTS: False I DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 28. Job interviews are often influenced by the correspondence bias. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 29. Decision makers rarely continue to perceive a belief as true when the basis for the belief is disproved. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 30. When people that we meet remind us of old acquaintances because their mannerisms are similar, we often infer that these two people are likely to possess other similar characteristics. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 31. The dilution effect is even more pronounced when subjects expect to justify their predictions to others. a. True b. False ANSWER: True POINTS: DIFFICULTY: I Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 32. Irrelevant information is weighted too lightly in judgment when irrelevant information later becomes relevant. a. True b. False ANSWER: POINTS: DIFFICULTY: False I Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 33. Overcorrection occurs when managers over analyze and over interpret their decision making processes. a. True b. False ANSWER: POINTS: True I DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 34. Executives are usually not susceptible to judgmental biases. a. True b. False ANSWER: POINTS: False 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 35. Judgmental accuracy is influenced by the amount of processing effort a decision maker is likely to allocate to a judgment task. a. True b. False ANSWER: POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 36. According to your readings, unbiased decision making is impossible when and are biased. a. perception and attention b. motivation and learning c. attention and learning d. attention and memory e. memory and motivation ANSWER: POINTS: DIFFICULTY: d 2 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 37. Managers tend to focus most on information relevant to a decision, except that which is: a. interesting b. complex c. easy to understand d. attention drawing e. well-written ANSWER: POINTS: DIFFICULTY: b 2 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 38. Information that stands out from the background is said to be: a. concrete b. salient c. temporally proximal d. vivid e. a positive frame ANSWER: POINTS: b 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 39. Which of the following is not a factor that influences vividness? a. Context or background b. The emotional interest of the information c. How concrete the information is d. Whether the information is first hand vs. second hand e. All of the above influence vividness. ANSWER: POINTS: DIFFICULTY: a 2 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 40. A is a shift in judgment away from a contextual reference point. a. assimilation effect b. framing effect c. accommodation effect d. contrast effect e. availability heuristic ANSWER: POINTS: d 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 41. After approving a $100,000 expenditure for a new piece of capital equipment, deciding to spend $10,000 on a print advertisement seems inconsequential. This is an example of what type of effect? a. Biased assimilation effect b. Framing effect c. Correspondence bias effect d. Contrast effect e. Availability heuristic ANSWER: POINTS: d 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 42. When two similar objects or issues are compared, and they are judged to be very similar, this is an example of what context effect? a. Assimilation effect b. Framing effect c. Correspondence bias effect d. Contrast effect e. Availability heuristic ANSWER: POINTS: a 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 43. is a shift toward a contextual reference point. a. Assimilation effect b. Dilution effect c. Correspondence bias effect d. Contrast effect e. Simulation heuristic ANSWER: POINTS: a 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 44. John thinks Mary is a great team member in his department based on a project he worked with her on a few months ago. During a current project, John has received several complaints about Mary from various team members. Despite this, John persists in believing his initial opinion of Mary is correct. This is an example of what effect? a. Biased assimilation effect b. Framing effect c. Correspondence bias effect d. Pseudodiagnosticity e. Dilution effect ANSWER: POINTS: a 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 45. When managers treat irrelevant information as if it were relevant, they exhibit: a. contrast effect b. context effect c. pseudodiagnosticity effect d. assimilation effect e. anchoring-and-adjustment effect ANSWER: POINTS: DIFFICULTY: c 2 Moderate LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 46. is the tendency to focus on one possibility at a time and ignore other possibilities. a. Groupthink b. Correspondence bias c. Pseudodiagnosticity effect d. Assimilation effect e. Selective hypothesis testing ANSWER: POINTS: e 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 47. Busy decision makers tend to focus on: a. all the possibilities b. one interpretation c. two to three categories d. no hypotheses e. only relevant information ANSWER: POINTS: b 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.15.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 48. Which of the following is not a common group decision making problem? a. Common knowledge effect b. Groupthink c. Group polarization d. Selective hypothesis testing e. All of the above are correct. ANSWER: POINTS: DIFFICULTY: e 2 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 49. What is the best way to overcome groupthink? a. Encourage group polarization b. Have a strong leader c. Frequently seek the opinion of impartial consultants d. Always have an agenda e. Always recap. what was discussed at the last meeting ANSWER: POINTS: c 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.01- 18.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 50. A manager who helped develop a new product that looks like it would be successful predicted a 90% chance of success for the new product. However, historical data indicate that of all new products introduced, only about 50% succeed. This suggests that the manager's prediction was guided primarily by the: a. representativeness heuristic b. availability heuristic c. simulation heuristic d. anchoring-and-adjustment heuristic e. contrast effect ANSWER: POINTS: a 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 51. Which bias results from underprocessing? a. Insensitivity to sample size b. The perseverance effect c. The salience effect d. The vividness effect e. All of the above result from underprocessing. ANSWER: POINTS: DIFFICULTY: a 2 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 52. Stores that experience extremely low sales in one sales period will typically perform better in the next sales period due to: a. regression to the mean b. expected utility theory c. contrast effect d. simulation effect e. perseverance effect ANSWER: POINTS: a 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 53. Risky decision making involves making a tradeoff between the desirability and the likelihood of an outcome. However, managers often focus mainly on desirability in some situations, and focus mainly on likelihood in others. This results in inconsistent preferences. Which heuristic is responsible for this bias? a. The representativeness heuristic b. The availability heuristic c. The simulation heuristic d. The anchoring-and-adjustment heuristic e. Correspondence bias ANSWER: POINTS: d 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 54. Which of the following heuristics involve judgments based on memory? a. The representativeness heuristic b. The availability heuristic c. The simulation heuristic d. The anchoring-and-adjustment heuristic e. The correspondence bias ANSWER: POINTS: b 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 55. Which of the following heuristics involve judgment based on imagination? a. Groupthink b. The availability heuristic c. The contrast effect d. The anchoring-and-adjustment heuristic e. None of the above is correct. ANSWER: POINTS: e 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 56. Various television shows about shark attacks makes it easy to imagine that one could be attacked by a shark when visiting the beach. This assumption is based on what effect? a. Biased assimilation effect b. The availability heuristic c. The simulation heuristic d. The anchoring-and-adjustment heuristic e. The dilution effect ANSWER: POINTS: c 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 57. Horne appraisals offered by real estate agents are heavily influenced by listing prices, even when more objective and more useful information is available. Which cognitive heuristic is responsible for this bias? a. Correspondence bias b. Availability heuristic c. Simulation heuristic d. Anchoring-and-adjustment heuristic e. Premature cognitive commitment effect ANSWER: POINTS: d 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.l5.18.02- 18.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 58. Which of the following is not a bias based on overprocessing? a. The dilution effect b. The perseverance effect c. The correspondence bias d. Premature cognitive commitment e. All of the above are based on overprocessing. ANSWER: POINTS: DIFFICULTY: e 2 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 59. Assuming that someone's action are a reflection of their true personality or disposition, and ignoring the possibility that their behavior could be influenced by the situation is known as: a. the dilution effect b. the perseverance effect c. the correspondence bias d. premature cognitive commitment e. anchoring-and-adjustment effect ANSWER: POINTS: DIFFICULTY: c 2 Moderate LEARNING OBJECTIVES: COBE.KARD.l5.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 60. Kelly is interviewing candidates for a job in her department. She meets Bill. Bill mentions that he is from California. The last person Kelly hired from California had to be fired. Kelly infers that Bill probably won't make a good employee. Kelly is falling victim to what effect? a. A contrast effect b. The simulation heuristic c. The correspondence bias d. An irrelevant analogy e. Sensitivity to sample size effect ANSWER: POINTS: d 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.15.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Comprehension 61. occurs when a decision maker continues to perceive a belief as true even when the basis for the belief is disproved. a. A contrast effect b. The simulation heuristic c. Pseudodiagnosticity d. The perseverance effect e. None of the above is correct. ANSWER: POINTS: d 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.15.18.03- 18.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Strategy Bloom's: Knowledge 62. What effect could bright color potentially have on information being presented? Why? Bloom's: Comprehension 63. Discuss the conditions that influence whether or not information is "vivid"for a manager engaging in decision making. Bloom's: Comprehension 64. What are the most common types of context effects? ANSWER: POINTS: The most common types of context effects are: contrast, assimilation, and framing effects. Bloom's: Knowledge 65. What affect does the "wording"of a problem have on managers' decisions? 66. When an event is ambiguous, what guides interpretations? What bias can this lead to? ANSWER: POINTS: If ambiguity exists, expectations guide interpretations. This can lead to biased assimilation 67. What does Diagnosticity depend upon? Bloom's: Comprehension 68. Discuss the effects that ofteu influence group decision making. 69. Define the availability heuristic. 70. What are the biases the result from "overprocessing?" ANSWER: POINTS: 10 DIFFICULTY: Challenging The biases that result from overprocessing are the correspondence bias, using irrelevant analo 71. What is the difference between the dilution effect and the perseverance effect? Bloom's: Knowledge [Show More]

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