MGT 300 Exam #2 2026/2027: Updated Questions with Verified Answers

MGT 300 EXAM #2 PREP QUESTIONS
WITH CORRECT DETAILED ANSWERS
2026/2027 LATEST UPDATE



escalation of commitment - CORRECT ANSWER>>>>-The
increased commitment to a decision despite negative
information sunk cost bias - CORRECT ANSWER>>>>hint:
type of bias

-The decision to continue an investment based on past
investments of time, effort, and/or money

framing error - CORRECT ANSWER>>>>-hint: type of error
-The tendency to highlight certain aspects of a situation
depending on whether they are positive or negative to solve a
problem while ignoring other aspects

lack of participation error - CORRECT
ANSWER>>>>-hint: type of error -The inclination to

,exclude certain people from the decision-making
process

randomness error - CORRECT ANSWER>>>>-hint: type of
error
- The tendency for people to believe they can predict the
outcome of chance events based on false information or
superstition



ease-of-recall bias - CORRECT ANSWER>>>>hint: type of
bias
-The propensity to over-rely on information recollected from
memory when making a decision

hindsight bias - CORRECT ANSWER>>>>-hint: type of bias
-The tendency to overestimate the ability to predict an outcome
of an event

projection bias - CORRECT ANSWER>>>>-hint: type of bias
-The inclination to believe other people think, feel, and act the
same way we do

,anchoring and adjustment heuristic - CORRECT
ANSWER>>>>-hint: type of heuristic - A process whereby
people base their decisions on the first piece of information
they are given without taking other probabilities into account

availability heuristic - CORRECT ANSWER>>>>-hint: type of
heuristic
-A rule of thumb for making judgments on examples and events
that immediately spring to mind

bounded rationality - CORRECT ANSWER>>>>-hint: type of
rationality
-is the idea that we are restricted by a variety of constraints
when making decisions

common-information bias - CORRECT ANSWER>>>>-hint:
type of bias
- the inclination to overemphasize information held by the
majority of group members while failing to consider other
perspectives held by the minority

confirmation bias - CORRECT ANSWER>>>>-hint: type of
bias

, -The tendency to seek out information that fuels our preexisting
views and to discount information that conflicts with our
worldview

decision making - CORRECT ANSWER>>>>-is the action or
process of identifying a strategy to resolve problems
-two types: programmed decisions and non-programmed
decisions

representativeness heuristic - CORRECT ANSWER>>>>-
hint: type of heuristic -A shortcut that bases a decision on
our existing mental prototype and similar stereotypes

ethical dilemma - CORRECT ANSWER>>>>-conflicts between
two or more morally unpleasant alternatives
-i.e. seeing a friend cheat on a test

Heuristics - CORRECT ANSWER>>>>-are shortcuts or "rules
of thumb" that allow us to make judgments and decisions
quickly and efficiently

intuition - CORRECT ANSWER>>>>- is the unconscious
process of making decisions based on imagination and
possibilities