MGT 300 ASU Neck Exam 4 with Complete Solutions

MGT 300 ASU Neck Exam 4 with Complete Solutions Anchoring and adjustment heuristic A process whereby people base their decisions on the first piece of information they are given without taking other probabilities into account Availability heuristic A rule of thumb for making judgments on examples and events that immediately spring to mind Bounded rationality The idea that we are restricted by a variety of constraints when making decisions Common-information bias The inclination to overemphasize information held by the majority of group members while failing to consider other perspectives held by the minority Complete rationality The assumption that we take in to account every single criterion or possible alternative to make a decision Confirmation bias The tendency to seek out information that fuels our preexisting views and to discount information that conflicts with our worldview Decision making The action or process of identifying a strategy to resolve problems Ease-of-recall bias: The propensity to over-rely on information recollected from memory when making a decision Escalation of commitment The increased commitment to a decision despite negative information Ethical dilemma A conflict between two or more morally unpleasant alternatives Framing error: The tendency to highlight certain aspects of a situation depending on whether they are positive or negative to solve a problem while ignoring other aspects Heuristics Shortcuts or "rules of thumb" that allow us to make judgments and decisions quickly and efficiently Hindsight bias The tendency to overestimate the ability to predict an outcome of an event Intuition An unconscious process of making decisions based on imagination and possibilities Justice approach A way to base decisions on the basis of the fairness Lack of participation error The inclination to exclude certain people from the decision- making process Non-programmed decisions New or nonroutine problems for which there are no proven answers Programmed decisions Automatic responses to routine and recurring situations Projection bias The inclination to believe other people think, feel, and act the same way we do Randomness error The tendency for people to believe they can predict the outcome of chance events based on false information or superstition Representativeness heuristic A shortcut that bases a decision on our existing mental prototype and similar stereotypes Rights approach: A decision-making method based on using moral principles that least infringe on the entitlements of others Satisficing decisions Solutions that aim for acceptable results rather than for the best or optimal ones Sunk cost bias The decision to continue an investment