Decision-Making Biases (Scenario) Frank Is President of Mega Manufacturing, a Canadian Company That

question 73

Multiple Choice

Decision-making Biases (Scenario)
Frank is president of Mega Manufacturing, a Canadian company that makes automobile parts. Sales and profits are down sharply this quarter, and Frank needs to analyze the series of events that have led to the poor performance. Frank begins by reviewing his recent interactions with Mike, the vice-president of sales.
-Mike advised Frank that he would be taking his newest sales executive,Eric,along on the trip to the Japanese auto maker's headquarters in Tokyo.When Frank asked how Eric was hired,Mike said,"Eric went to the same university as me,so I knew he had to be good!" Mike's comment demonstrates which of the following?

• A)selective perception bias
• B)framing bias
• C)self-serving bias
• D)confirmation bias

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Definitions:

Utility

In economics, a measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Satisfaction

The fulfillment of one's needs or the pleasure derived from consuming goods or services.

Consuming It

Pertains to the act of using up resources or products to satisfy needs or desires.

Ability

The possession of the means or skill to do something.