Epaulets perception may preclude the decision maker from seeing the correct problem. Which of the following is an example of faulty perception?
Answer(s): C
The inability to see all aspects of a situation may prevent accurate problem definition. This inability may be caused by faulty perception. Faulty perception includes group pressure influencing which problems are perceived or how the problems are defined.
When choosing the best available solution to a problem, human aspects of the choice must be considered. Which is a true statement regarding human aspects of the choice?
Answer(s): D
The selection of the best available solution is the objective of the decision-making process. Human aspects of the choice must be considered. The multistep process of decision making must be followed when making organizational changes. Implementing change is a critical part of the decision-making process because people are crucial to the effectiveness of the choice.
A decision maker is operating in an environment in which all the facts surrounding a decision are known exactly, and each alternative is associated with only one possible outcome. The environment is known as
Answer(s): A
The less the variability of the future results of a decision, the smaller the risk involved. If each choice is associated with only one possible outcome, no variability exists. Such a condition is one of certainly (zero variance).
The use of a decision tree is appropriate for decision making under conditions of
Decision tree analysis is used when various options of certainty', their consequences, and the probabilities of those consequences can be ascertained with a high degree of confidence. Under conditions of uncertainty', however, probabilities are unknown.
The modeling technique to be used for situations involving a sequence of events with several possible outcomes associated with each event is
Decision tree analysis is useful when the most beneficial series of decisions is to be chosen. The possible decisions for each decision point, the events that might follow from each decision, the probabilities of these events, and the quantified outcomes should be known.
Post your Comments and Discuss Financial CMA exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the CMA content, but please register or login to continue.