When Using a Profitability Index to Select Projects,a Value of 0.63

question 104

True/False

When using a profitability index to select projects,a value of 0.63 is preferred over a value of 0.21.

Understand the concept of satisficing and how it applies to decision-making.

Identify techniques used to stimulate individual and group creativity, as well as recognizing methods that are not beneficial.

Discuss the advantages and disadvantages of group decision-making versus individual decision-making.

Explain the concept of pooled decision-making and its implications for modern managers.

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Definitions:

Framing

The act of constructing or presenting a concept, issue, or situation in a specific way to influence perception.

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Bounded Rationality

A concept that decision-makers are limited by the information they have, cognitive limitations, and finite time to make decisions.

Bounded Rationality

The concept that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.