SOLVED

21) Sharon is really upset about her performance evaluation. Ellen, her boss, chastised her for a recent error that she made and failed to acknowledge many of Sharon’s successes, the majority of which occurred three to six months ago. Ellen has exhibited a. anchoring bias. b. confirmation bias. c. availability bias. d. overconfidence bias. e. escalation of commitment. 22) Steve submitted a proposal to his boss for a new piece of equipment that his department needed. He felt sure that his proposal would be approved even though it was a difficult year financially for his company, and he predicted that it would be approved. Unfortunately, to his surprise, his proposal was rejected. Steve has exhibited a. anchoring bias. b. confirmation bias. c. randomness error. d. overconfidence bias. e. escalation of commitment. 23) Francine was at an auction, and, like many other bidders, she wanted to successfully bid on an antique lamp. She managed to outbid 10 other bidders, but she ended up paying $5000 more than it was worth. Francine has exhibited a. overconfidence bias. b. hindsight bias. c. randomness error. d. escalation of commitment. e. risk aversion. 24) Ahmad was upset. The new product line that he introduced last year has been a total failure. At the time that he had made the decision to go ahead with it, the economy was strong. However, shortly after the line was launched, the economy weakened sharply, and this contributed to its failure. He felt that he should have seen the downturn in the economy coming, and, thus, he should not have launched the new product line. Ahmad is experiencing a. overconfidence bias. b. hindsight bias. c. randomness error. d. winner’s curse. e. confirmation bias. 25) Dante recently started his career and was concerned that he had already made some decisions with a biased frame of mind. In order to reduce the chances that this will happen in the future, when faced with new decisions, he plans to a. generate fewer alternatives. b. create meaning out of random events. c. look for information that confirms his beliefs. d. be more confident in his decision making. e. generate more alternatives. 26) Your director stresses the value of making a decision on initial information. She insists that what is initially considered in the decision-making process should be weighed as most important throughout the implementation of the decision. She has instructed you to ignore any subsequent information that you find since the decision was made. This is an example of a. risk aversion. b. an overconfidence bias. c. escalation of commitment. d. the anchoring bias. e. making an optimal decision. 27) The evidence indicates that, on average, groups make a. less expensive decisions than individuals because of the optimal choices made. b. more expensive decisions than individuals because of the lengthy time needed to make the decisions. c. less creative solutions than individuals because of time restrictions. d. faster decisions than individuals because of the division of labour. e. better quality decisions than individuals. 28) One of the symptoms of groupthink is a. illusion of creativity. b. illusion of conformity. c. assumption of immorality. d. illusion of unanimity. e. irrational reason for decisions. 29) Groupthink would most likely happen in a. heterogeneous groups. b. groups where debate is encouraged. c. groups where cohesion is paramount. d. groups where members participate actively. e. groups made up of members who think “outside the box.” 30) Wherever possible, groupthink should be avoided because it results in a. conflict within the group. b. more risky decisions. c. an anchored bias. d. reduced effectiveness. e. representative heuristics.