- An individual has full and perfect information on which to base a choice.
- Measurable criteria exist for which data can be collected and analyzed.
- An individual has the cognitive ability, time, and resources to evaluate each alternative against the others.
Which of the following is an assumption of the rational model of decision making quizlet?
The rational model of decision making assumes that the:
decision maker can calculate the probability of success for each alternative.
Which of the following is an assumption of the rational model of decision making?
- An individual has full and perfect information on which to base a choice.
- Measurable criteria exist for which data can be collected and analyzed.
- An individual has the cognitive ability, time, and resources to evaluate each alternative against the others.
Which of the following is an assumption underpinning the rational choice model of decision making?
Which of the following is an assumption underpinning the rational choice model of decision making?
The decision maker is able to identify all the possible alternative solutions to a problem
. … Rationality is limited by the time available to evaluate options.
Which of the following is an assumption of the bounded rationality model quizlet?
The bounded rationality model assumes that managers:
select the alternative that is completely rational. always select the best possible alternative
. recognize that their conception of the world is complex.
What is an example of rational decision making?
The idea that individuals will always make rational, cautious and logical decisions is known as the rational choice theory. An example of a rational choice would be
an investor choosing one stock over another because they believe it offers a higher return
. Savings may also play into rational choices.
What are the steps in rational decision making?
- Step 1: Identify the Problem. …
- Step 2: Establish Decision Criteria. …
- Step 3: Weigh Decision Criteria. …
- Step 4: Generate Alternatives. …
- Step 5: Evaluate Alternatives. …
- Step 6: Select the Best Alternative.
Which of the following is a Nonprogrammed decision?
Non-programmed decisions are
one-shot decisions
. Handled by techniques such as judgment, intuition, and creativity. A logical approach to deal with extraordinary, unexpected, and unique problems. Managers take heuristic problem-solving approaches in which logic; common sense and trial and error are used.
What is the second step in the decision making process?
- Step 1: Identify the decision. You realize that you need to make a decision. …
- Step 2: Gather relevant information. …
- Step 3: Identify the alternatives. …
- Step 4: Weigh the evidence. …
- Step 5: Choose among alternatives. …
- Step 6: Take action. …
- Step 7: Review your decision & its consequences.
Which of the following is an example of a programmed decision situation?
Formulating a set of decision rules for making inventory re-ordering decisions
is an example of programmed decision making.
Bounded rationality is a human decision-making process in which we attempt to satisfice, rather than optimize. In other words,
we seek a decision that will be good enough, rather than the best possible decision
.
What are the various models of decision making?
The four different decision-making models—
rational, bounded rationality, intuitive, and creative
—vary in terms of how experienced or motivated a decision maker is to make a choice. Choosing the right approach will make you more effective at work and improve your ability to carry out all the P-O-L-C functions.
What are the types of decision making?
- Routine and Basic Decision Making. …
- Personal and Organizational Decision Making. …
- Individual and Group Decision Making. …
- Policy and Operating Decision Making. …
- Programmed and Non-Programmed Decision Making. …
- Planned and Unplanned Decision Making. …
- Tactical and Strategic Decision Making.
What is one reason why decisions are made using bounded rationality?
The main conclusion is that bounded rationality occurs
when companies lack context information of the results of their actions
, being forced to make less than optimal decisions because they have to adjust to the conditions in which they operate.
What is one reason decisions made using bounded rationality quizlet?
The situation they find themselves in is highly uncertain, and the probability of success is not known. Bounded rationality
assumes that managers do this
. They select the first alternative that is “good enough,” because the costs of optimizing in terms of time and effort are too great.
Which of the following defines a problem in the decision making process?
1) In decision making, a problem can be defined as
a discrepancy between what exists and what the problem solver desires to exist
. 2) The second step in the decision-making process is identifying a problem.
