The Local Operations Manager for the Internal Revenue Service Must

question 12

Multiple Choice

The local operations manager for the Internal Revenue Service must decide whether to hire one, two, or three temporary tax examiners for the upcoming tax season. She estimates that net revenues (in thousands of dollars) will vary with how well taxpayers comply with the new tax code just passed by Congress, as follows: $$\begin{array} { | l | l | l | l | } \hline { \begin{array} { l } \text { NUMBER } \\\text { OF } \\\text { EXAMINERS }\end{array} } & { \text { COMPLIANCE } } \\\hline & \text { LOW } & \text { NORMAL } & \text { HIGH } \\\hline \text { One } & 50 & 50 & 50 \\\hline \text { Two } & 100 & 60 & 20 \\\hline \text { Three } & 150 & 70 & - 10 \\\hline\end{array}$$ If she uses the minimax regret criterion, how many new examiners will she decide to hire?

• A) one
• B) two
• C) three
• D) either one or two
• E) either two or three

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Definitions:

Groupthink

Groupthink refers to a psychological phenomenon where the desire for harmony and conformity within a group results in an irrational or dysfunctional decision-making outcome.

Nominal Group

A technique used in group decision-making that involves individuals generating ideas independently before sharing and discussing them collectively.

Illusion Of Agreement

The false perception that consensus has been achieved in a group when, in reality, members may not fully understand or support the decision.

Mediator

An impartial individual who facilitates dialogue between conflicting parties to help them reach a mutual agreement.