Judgment in Managerial Decision Making 8th Edition by Max H. Bazerman -Test Bank

Judgment in Managerial Decision Making 8th Edition by Max H. Bazerman -Test Bank

Chapter 3

Multiple choice

1. The fact that heavy advertising of a company’s or a product’s name on billboards and in the media makes that name stick in people’s memory as bearing high quality is an example of what bias? 
   1. Insensitivity to base rates.
   2. Retrievability.
   3. The conjunction fallacy.
   4. Ease of recall.

Ans: d

Response: p. 34-37

1. A survey among tenants of shared apartments asked each tenant what percentage of the cleaning around the apartment he or she does. The survey found that aggregating the percentages for each apartment produces an average of much more than 100%. This result may be due to what bias? 
   1. Ease of recall.
   2. Insensitivity to sample size.
   3. Insensitivity to base rates.
   4. The conjunction fallacy.

Ans: a

Response: p. 34-37

1. When do people use base-rate data correctly?
   1. When they are instructed to do so. 
   2. When there is no other information available.
   3. When this information confirms their initial hypotheses.
   4. All of the above

Ans: b

Response: p. 39

1. Which of the following can serve as a cognitive explanation for misconceptions of chance?
   1. People expect probabilities to even out.
   2. People remember unusual sequences better than ones that appear more random.
   3. People judge probabilities of future events as contingent on past events.
   4. All of the above.

Ans: d

Response: p. 34-37

1. Drake is a department manager in a company that has recently decided to hire a new analyst. After interviewing all candidates, Drake recommended the company hire Anne, but senior management preferred to hire Beth. Drake argued that Beth is an inferior choice, but agreed to accept her for a trial period of six months. At the end of the trial period, Drake evaluated Beth’s performance as poor. Although this evaluation may have been fair, it is also possible that it was biased by:
   1. The curse of knowledge.
   2. The confirmation trap.
   3. Overconfidence.
   4. Misconceptions of chance.

Ans: b

Response: p. 46-49

1. Which bias occurs only after the true outcome of an event is known?
   1. Retrievability.
   2. Ease of recall.
   3. The hindsight bias.
   4. None of the above.

Ans: c

Response: p. 54-57