Chapter 7 · The Decision-Making Process
8concepts
2calculations
Conventions
Original deterministic identification/numeric exercises. Answer with the requested textbook term; numeric answers use the stated units. Each solution follows the complete givens. Adapted under CC BY-SA 4.0. https://pressbooks.openedmb.ca/management/?p=150
Questions
01Name a decision chosen from established alternatives for a recurring situation.
Dyck et al. (2026), Chapter 7, 7.3
02Name a newly developed response to a novel situation.
Dyck et al. (2026), Chapter 7, 7.3
03Name information that can be articulated and codified in a manual.
Dyck et al. (2026), Chapter 7, 7.4.1
04Name the approach for high agreement on aims and means but low knowledge, using small pilots.
Dyck et al. (2026), Chapter 7, 7.4.3
05Name choosing an adequate option rather than proving it is optimal.
Dyck et al. (2026), Chapter 7, 7.4.3
06Name persistence with a poor decision despite evidence it is failing.
Dyck et al. (2026), Chapter 7, 7.5.2
07Name costs of contracts, inspections and certification used to reduce uncertainty and opportunism in exchanges.
Dyck et al. (2026), Chapter 7, 7.6
08Constructed exercise: a delivery choice costs 20000 pesos with probability 0.6 and 50000 pesos with probability 0.4. These are the only outcomes. What is its expected cost in pesos?
Dyck et al. (2026), Chapter 7, 7.4.3
09Constructed exercise: Option A has expected cost 32000 pesos. Option B costs 35000 pesos for certain. On expected financial cost alone, how many pesos cheaper is A?
Dyck et al. (2026), Chapter 7, 7.4.3
10Name deliberately misleading an exchange partner to pursue self-interest.
Dyck et al. (2026), Chapter 7, 7.6