MGT 3200 exam 2 review questions from
lectures questions and answers 2026RATED
A+
You are a labor contractor negotiator for a large manufacturer. Right before the strike deadline the labor
union leader gives you their final offer. If you accept their final offer, you know for sure that you will
avoid a strike but you also know for sure that you will commit to a costly labor contract. Based on
information from a reliable informant inside the union, there is a 25% that they really mean it when they
say it's their final offer and a 75% chance they're bluffing. If you reject their final offer, you could get a
better labor contract if they're bluffing but you could cause a costly strike if they really mean it.
Accepting their offer is a decision made under____________ where as rejecting their offer is a decision
made under _________. - CORRECT ANSWERS certainty: risk
Henry ford had a rule when hiring executives; "if they salted their food before they tasted it, then they
would be poor decision makers and they were not hired". This is an example of
1. A decision made under certainty
2.A programmed decision
3.A non programmed decision
4.A decision made under uncertainty
5. 1 and 2 - CORRECT ANSWERS 2. a programmed decision
Non programmed decisions are associated with decisions made under conditions of
1. Certainty
2. Risk
3. Uncertainty
4. All of the above
5. Both uncertainty and risk - CORRECT ANSWERS 5. both uncertainty and risk
,A retail store uses a cognitive ability test to hire candidates for a managerial position. They have found
when they use a cut score of 115 (above average IQ score) to hire candidates, 7.5 times out of 10 they
become successful managers. This is a decision made under
1. Certainty
2. Risk
3. Uncertainty
4. None of they above; you can't tell what decision making condition it is from the facts presented -
CORRECT ANSWERS 2. risk`
Which of the following is true concerning decision making under risk
1. It's the most common decision making condition
2. It involves probabilities between 0 and 1
3. Even when you play the odds well, your decision can still have a negative result
4.The key to good decision making under risk is accurate probabilities
5.All of the above are true - CORRECT ANSWERS 5. all of the above are true
The traditional economic model of decision making assumes that managers make decisions under
conditions of __________
1. Certainty
2. Risk
3. Uncertainty
, 4. Certainty and risk
5. Risk and uncertainty - CORRECT ANSWERS 1. certainty
which of the following factors would bound one's rationality?
1. Limited mental capacity
2. Emotional state
3. Unforeseeability of future events
4. All of the above bound one's rationality
5. Only 1 and 2 bound one's rationality - CORRECT ANSWERS 4. all of the above bound one's
rationality
the behavioral model assumes that managers make decisions under conditions of _________
1. Certainty
2.Risk
3.Uncertainty
4.All of the above
5. Risk and uncertainty - CORRECT ANSWERS 5. risk and uncertainty
all of the following are true concerning satisficing except
1. Satisficing saves time and effort
2. Satisficing entails selecting the first alternative that's just good enough
3. Satisficing can never lead to a maximizing solution
lectures questions and answers 2026RATED
A+
You are a labor contractor negotiator for a large manufacturer. Right before the strike deadline the labor
union leader gives you their final offer. If you accept their final offer, you know for sure that you will
avoid a strike but you also know for sure that you will commit to a costly labor contract. Based on
information from a reliable informant inside the union, there is a 25% that they really mean it when they
say it's their final offer and a 75% chance they're bluffing. If you reject their final offer, you could get a
better labor contract if they're bluffing but you could cause a costly strike if they really mean it.
Accepting their offer is a decision made under____________ where as rejecting their offer is a decision
made under _________. - CORRECT ANSWERS certainty: risk
Henry ford had a rule when hiring executives; "if they salted their food before they tasted it, then they
would be poor decision makers and they were not hired". This is an example of
1. A decision made under certainty
2.A programmed decision
3.A non programmed decision
4.A decision made under uncertainty
5. 1 and 2 - CORRECT ANSWERS 2. a programmed decision
Non programmed decisions are associated with decisions made under conditions of
1. Certainty
2. Risk
3. Uncertainty
4. All of the above
5. Both uncertainty and risk - CORRECT ANSWERS 5. both uncertainty and risk
,A retail store uses a cognitive ability test to hire candidates for a managerial position. They have found
when they use a cut score of 115 (above average IQ score) to hire candidates, 7.5 times out of 10 they
become successful managers. This is a decision made under
1. Certainty
2. Risk
3. Uncertainty
4. None of they above; you can't tell what decision making condition it is from the facts presented -
CORRECT ANSWERS 2. risk`
Which of the following is true concerning decision making under risk
1. It's the most common decision making condition
2. It involves probabilities between 0 and 1
3. Even when you play the odds well, your decision can still have a negative result
4.The key to good decision making under risk is accurate probabilities
5.All of the above are true - CORRECT ANSWERS 5. all of the above are true
The traditional economic model of decision making assumes that managers make decisions under
conditions of __________
1. Certainty
2. Risk
3. Uncertainty
, 4. Certainty and risk
5. Risk and uncertainty - CORRECT ANSWERS 1. certainty
which of the following factors would bound one's rationality?
1. Limited mental capacity
2. Emotional state
3. Unforeseeability of future events
4. All of the above bound one's rationality
5. Only 1 and 2 bound one's rationality - CORRECT ANSWERS 4. all of the above bound one's
rationality
the behavioral model assumes that managers make decisions under conditions of _________
1. Certainty
2.Risk
3.Uncertainty
4.All of the above
5. Risk and uncertainty - CORRECT ANSWERS 5. risk and uncertainty
all of the following are true concerning satisficing except
1. Satisficing saves time and effort
2. Satisficing entails selecting the first alternative that's just good enough
3. Satisficing can never lead to a maximizing solution
