Chapter 14

Question 1

Certainty

Answer 1

The condition under which individuals are fully informed about a problem, alternative solutions are known, and the results of each solution or known.

Question 2

Risk

Answer 2

The condition under which individuals can define a problem, specify the probability of certain events, identify alternative solutions, and state the probability of each solution leading to a result.

Question 3

Objective probability

Answer 3

Likelihood that a specific result will occur, based on hard facts and numbers.

Question 4

Subjective probability

Answer 4

Likelihood that a specific result will occur, based on personal judgment.

Question 5

Uncertainty

Answer 5

The condition under which an individual does not have the necessary information to assign probabilities to the outcome of alternative solutions.

Question 6

Bounded rationality

Answer 6

The limitations of rationality and emphasis on decision-making process’s often used by individuals or teams.

Question 7

Satisficing

Answer 7

Tendency to select an acceptable rather than optimal, goal or decision. Acceptable equals easier to identify, less controversial, safer.

Question 8

Limited search

Answer 8

Individuals and teams often make a limited search for possible goals or solutions, often considering alternatives only until they find one that seems adequate.

Question 9

Escalating commitment

Answer 9

A process of continuing for increasing the allocation of resources to a course of action even though a substantial amount of feedback indicate that the choice made was wrong.

Question 10

Risk propensity

Answer 10

The tendency of an individual or team to make or avoid decisions in which the anticipated outcomes are unknown.

Question 11

Problem framing

Answer 11

The tendency to interpret issues and options in either positive or negative terms.

Question 12

Brainstorming

Answer 12

In unrestrained flow of ideas in a group or team with all critical judgment suspended.

Criticism is ruled out – participants must withhold critical judgment until later.

Quantity is desired – the greater the number of ideas, the greater the likelihood of usefulness.

Free wheeling is welcomed – the wilder the idea, the better, Taming down an idea is easier than thinking of new ones.

Combination and improvement or salt – contribution of your ideas, and improve others.