SCENARIO 12-1 You Are Making a Decision Whether to Discontinue

question 27

Multiple Choice

SCENARIO 12-1 You are making a decision whether to discontinue research on a new drug.This new drug would save lives, but it is uncertain whether it can be developed within a reasonable time frame and at a reasonable cost.Your firm has already spent a small fortune on this drug.You have gathered so much information in preparation for making the decision that you are unable to sort the good information from the superfluous.
You state to the committee helping you that all information and research on this drug and the disease it is to treat has been sorted and processed into the 36 binder that are on the table in front of them.In making this statement and assuming you have complete information you are committing

• A)confirmation bias.
• B)optimal solution.
• C)lateral approach.
• D)fundamental attribution error.
• E)risk aversion.

Learn about the historical background and evidence for the wisdom of the crowd effect.

Understand the Ringelmann effect and its implications for group productivity.

Recognize the role of anonymity in work effort and performance.

Learn about the origins and early studies of social facilitation.

---

Definitions:

Administrative Dispute Resolution Act

A law aimed at promoting the use of alternative dispute resolution processes, such as arbitration and mediation, within the U.S. federal government.

1990

A year not identified by a specific event or definition; it is simply a point in time on the Gregorian calendar.

Interpretative Rules

Regulations or guidelines issued by government agencies for clarifying how the agency construes the legislation it administers.

Binding

An agreement or obligation that cannot be legally avoided or ignored.