It Is Appropriate to Make a Decision Using Bounded Rationality

question 63

Multiple Choice

It is appropriate to make a decision using bounded rationality when

• A) it is not possible to be decisive.
• B) a group has to arrive at the decision.
• C) the decision needs to be made quickly in a crisis.
• D) it is not possible to use stereotypes.

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Definitions:

Consultative

A leadership or decision-making style that involves seeking input or feedback from others before making a final decision.

Representativeness heuristic

A cognitive shortcut used when making judgments about the probability of an event under uncertainty, based on how similar it is to a typical case.

Team leader

A person appointed or recognized within a group who guides, inspires, and coordinates the efforts towards achieving team objectives.

Accessibility heuristic

A cognitive shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.