Sara’s laptop started causing her problems. It was taking a long time to boot up, and froze unexpectedly a number of times.

Which of the following would NOT be good piece of advice to offer a company that is trying to enhance organizational creativity?

a. Ensure team stability by keeping team membership intact for extended periods of time.

b. Use the nominal group technique to avoid the pitfalls of the common group process.

c. Diversify your team.

d. Incorporate creative behavior into the performance appraisal process.

(a) Medium/Analysis

85. Which decision-making model would you use when your goals are unclear, there is time pressure, and you have experience with the problem?

a. the rational decision making model

b. bounded rational model

c. intuitive decision making model

d. creative decision making model

(c) Medium/Evaluation

86. The bounded rationality model should be used to make decisions when

a. the minimum criteria are clear.

b. the decision is important.

c. there is time pressure.

d. new solutions need to be generated.

(a) Medium/Evaluation

87. If you do not have relevant expertise in the issues to make a decision, you should NOT use which decision making model?

a. bounded rationality decision-making

b. rational decision-making model

c. creative decision-making

d. intuitive decision-making

(d) Medium/Evaluation

Section II:  Faulty Decision Making

88. Individuals are influenced in their decision making by all of the following EXCEPT

a. escalation of commitment.

b. foresight bias.

c. anchoring.

d. framing bias.

(b) Easy/Knowledge

89. Overconfidence bias

a. is the tendency of decision makers to be influenced by the way that problems are framed.

b. occurs when looking backward in time where mistakes seem obvious after they have already occurred.

c. refers to the tendency for individuals to rely too heavily on a single piece of information.

d. occurs when individuals overestimate their ability to predict future events.

(d) Easy/Knowledge

90. Sara’s laptop started causing her problems. It was taking a long time to boot up, and froze unexpectedly a number of times. Now the laptop has shut down completely and she cannot get it started up again. One of the group members on her project said to Sara, “You should have gone for help when it started acting up, now you’ve affected all of us.” This scenario is an example of what type of decision-making trap?

a. framing bias

b. anchoring

c. overconfidence bias

d. hindsight bias

(d) Difficult/Application

91. A movie called the “Money Pit” starring Tom Hanks and Shelley Long focused on the couple buying a house and continually having to spend money repairing one part of it after another. A number of times they should have sold the house, but they kept thinking that if they did just one more thing, the house would be great.  This is situation is an example of what decision-making trap?

a. anchoring

b. escalation of commitment

c. framing bias

d. overconfidence bias

(b) Medium/Application

92. The tendency for decision makers to be influenced by the way that a situation or problem is presented is

a. escalation of commitment.

b. anchoring.

c. overconfidence bias.

d. framing bias.

(d) Easy/Knowledge

93. Escalation of commitment occurs because

a. decision makers do not want to admit they were wrong.

b. strict “turn back” points have been established.

c. persistence pays off.

d. decision makers lack personal pride.

(a) Medium/Evaluation