Decision Making Exam – Decisive
ACTUAL QUESTIONS AND CORRECT
ANSWERS
we are terrible at making (especially important) decisions - CORRECT ANSWERS✅✅•We
think we are good at it.
•We love to jump to conclusions based on limited information (Clive is struggling).
•Most people don't like their career choice
•Most business decisions don't add value for stakeholders(83%!)
•We love to "trust our gut" but it is often wrong.
WHY are we terrible at making (especially important) decisions - CORRECT
ANSWERS✅✅1. We are not "programmed" to make complex decisions
2. It takes hard work! And we hate hard work!
4 villians of decision making - CORRECT ANSWERS✅✅narrow framing
confirmation bias
short term emotion
overconfidence
narrow framing - CORRECT ANSWERS✅✅unnecessarily limiting our options to "this or
that"
-try to think about this AND that
confirmation bias - CORRECT ANSWERS✅✅seek out information that bolster out beliefs
-do the opposite. appoint a devil's advocate
, short term emotion - CORRECT ANSWERS✅✅our current "feelings" get in the way
-try to give the decision some distance
overconfidence - CORRECT ANSWERS✅✅we are convinced our guts are right
-follow a process and use data wherever possible
WRAP process - CORRECT ANSWERS✅✅-Widen your options
-Reality test your assumptions
-Attain distance before deciding
-Prepare to be wrong
What phrase should be an alert that you or someone else is using a narrow frame? -
CORRECT ANSWERS✅✅"Should I or shouldn't I?"
(teenagers!) (business too!! - Gatorade and Snapple)
What are some techniques for avoiding a narrow frame? - CORRECT
ANSWERS✅✅1.Think about the opportunity cost (Eisenhower)
2.Try vanishing options (what else would you do?)
Why is it easier to avoid a narrow frame from the outside? - CORRECT ANSWERS✅✅We
tend to focus on options that are immediately salient (stereo example).
Outside sees different options
Multitracking - CORRECT ANSWERS✅✅consider more than one option simultaneously
ACTUAL QUESTIONS AND CORRECT
ANSWERS
we are terrible at making (especially important) decisions - CORRECT ANSWERS✅✅•We
think we are good at it.
•We love to jump to conclusions based on limited information (Clive is struggling).
•Most people don't like their career choice
•Most business decisions don't add value for stakeholders(83%!)
•We love to "trust our gut" but it is often wrong.
WHY are we terrible at making (especially important) decisions - CORRECT
ANSWERS✅✅1. We are not "programmed" to make complex decisions
2. It takes hard work! And we hate hard work!
4 villians of decision making - CORRECT ANSWERS✅✅narrow framing
confirmation bias
short term emotion
overconfidence
narrow framing - CORRECT ANSWERS✅✅unnecessarily limiting our options to "this or
that"
-try to think about this AND that
confirmation bias - CORRECT ANSWERS✅✅seek out information that bolster out beliefs
-do the opposite. appoint a devil's advocate
, short term emotion - CORRECT ANSWERS✅✅our current "feelings" get in the way
-try to give the decision some distance
overconfidence - CORRECT ANSWERS✅✅we are convinced our guts are right
-follow a process and use data wherever possible
WRAP process - CORRECT ANSWERS✅✅-Widen your options
-Reality test your assumptions
-Attain distance before deciding
-Prepare to be wrong
What phrase should be an alert that you or someone else is using a narrow frame? -
CORRECT ANSWERS✅✅"Should I or shouldn't I?"
(teenagers!) (business too!! - Gatorade and Snapple)
What are some techniques for avoiding a narrow frame? - CORRECT
ANSWERS✅✅1.Think about the opportunity cost (Eisenhower)
2.Try vanishing options (what else would you do?)
Why is it easier to avoid a narrow frame from the outside? - CORRECT ANSWERS✅✅We
tend to focus on options that are immediately salient (stereo example).
Outside sees different options
Multitracking - CORRECT ANSWERS✅✅consider more than one option simultaneously
