As the Manager in Charge,you Must Make a Decision About

question 58

Multiple Choice

As the manager in charge,you must make a decision about the appropriateness of discontinuing research on a new drug.This new drug would save lives,but it is uncertain whether the company can develop it within a reasonable time frame and at a reasonable cost.Your firm has already spent a small fortune on researching this drug. Early trials of the drug showed good results.Although dosage levels produced spurious effects,you are certain that time and effort will fix this.You decide to commit to the program based on this information.What decision-making bias may be affecting your decision:

• A)overconfidence bias
• B)anchoring bias
• C)availability bias
• D)confirmation bias

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Definitions:

Candy Store

A retail shop specializing in the sale of candies, sweets, and sometimes other confectionery items.

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The average outcome or return anticipated from a decision or investment, considering all possible outcomes.

Perfect Information

A situation in which all participants have access to all relevant information, often used in game theory and economic models.

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Houses that are designed and built according to the specifications and preferences of the homeowner.