Data and Information Quiz
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Questions and Answers

Data is considered processed and analyzed facts.

False

Completeness is an attribute of useful information that ensures managers have all the information needed to make effective decisions.

True

Uncertainty in decision-making refers to knowing the possible outcomes and assigning probabilities to them.

False

The first step in the decision-making process is to develop alternatives.

<p>False</p> Signup and view all the answers

Managers often have complete information when making decisions due to the nature of information availability.

<p>False</p> Signup and view all the answers

Structured problems are typically new or unusual issues that require innovative solutions.

<p>False</p> Signup and view all the answers

Relevance in the context of useful information means the information suits a manager's particular needs and circumstances.

<p>True</p> Signup and view all the answers

After selecting an alternative in the decision-making process, the next step is to analyze its effectiveness.

<p>False</p> Signup and view all the answers

Programmed decisions are characterized by being unique and nonrecurring.

<p>False</p> Signup and view all the answers

A rule is an explicit statement that tells managers what can or cannot be done.

<p>True</p> Signup and view all the answers

Nonprogrammed decisions arise from well-structured problems with clear guidelines.

<p>False</p> Signup and view all the answers

The certainty condition in decision-making means that all information needed is unknown.

<p>False</p> Signup and view all the answers

The immediate gratification bias involves choosing options with delayed rewards.

<p>False</p> Signup and view all the answers

Sunk costs error leads individuals to focus on future consequences rather than past investments.

<p>False</p> Signup and view all the answers

Intuitive decision-making relies solely on logical reasoning without any personal experience.

<p>False</p> Signup and view all the answers

Evidence-based decision-making emphasizes the use of the best available facts for making decisions.

<p>True</p> Signup and view all the answers

Groupthink promotes the open exchange of differing opinions within a group.

<p>False</p> Signup and view all the answers

Information technology is limited to organizing and storing data without enhancing decision-making.

<p>False</p> Signup and view all the answers

Enterprise Resource Planning (ERP) systems integrate various business processes across an organization.

<p>True</p> Signup and view all the answers

The rational decision-making approach assumes that all decision-makers are fully objective and logical.

<p>True</p> Signup and view all the answers

Bounded rationality indicates that managers can analyze all possible information and alternatives.

<p>False</p> Signup and view all the answers

A procedure consists of a series of steps used to respond to ill-structured problems.

<p>False</p> Signup and view all the answers

Study Notes

Data and Information

  • Data are raw, unanalyzed facts.
  • Information is processed and analyzed data.
  • Useful information has quality, timeliness, completeness, and relevance.

Attributes of Quality Information

  • Quality: Accurate and reliable information is high quality.
  • Timeliness: Information needs to be available in a timely manner, often real-time.
  • Completeness: Complete information provides all needed data for decisions.
  • Relevance: Relevant information directly helps managers in their tasks and needs.

Incomplete Information

  • Real-world decisions lack complete information due to:
    • Risk: Potential outcomes and probabilities are known.
    • Uncertainty: Outcomes' probabilities are unknown.
    • Ambiguity: Multiple, potentially conflicting interpretations of information.
    • Time constraints and information costs: Limited time and resources to evaluate all options.

Decision Making

  • Decision-making involves steps:

    • Identify a problem: Discrepancy between desired and current state.
    • Identify decision criteria: Define what's important.
    • Allocate weights to criteria (if needed): Prioritize criteria.
    • Develop alternatives.
    • Analyze alternatives using criteria.
    • Select an alternative.
    • Implement the alternative.
    • Evaluate decision effectiveness.

  • Structured vs. Unstructured Problems:

    • Structured problems are familiar and easily defined.
    • Unstructured problems are unique and unusual, demanding custom-made solutions.

  • Programmed vs. Nonprogrammed Decisions:

    • Programmed decisions are routine, with established guidelines.
      • Types: Procedures, rules, and policies.
    • Nonprogrammed decisions are unique, requiring creative solutions to novel problems/opportunities.

Conditions Affecting Decisions

  • Certainty: Complete information is available.
  • Risk: Clear goals and estimated probabilities of success/failure.
  • Uncertainty: Known goals, but incomplete information about alternatives or future events.
  • Ambiguity: Unclear goals, hard-to-define alternatives, and unavailable outcome information.

Decision-Making Biases and Errors

  • Overconfidence bias: Overestimating one's knowledge or abilities.
  • Immediate gratification bias: Prioritizing immediate rewards over long-term gains.
  • Anchoring effect: Focusing too much on initial information.
  • Confirmation bias: Seeking information confirming pre-existing beliefs.
  • Hindsight bias: Falsely believing an outcome was predictable.
  • Sunk cost error: Focusing on past investments instead of future outcomes.
  • Self-serving bias: Attributing successes to oneself and failures to others.

Decision-Making Approaches

  • Rational decision-making: Logical choices to maximize value.
    • Rationality assumptions: Objective, clear goals, thorough analysis of options, and maximizing choices.
  • Bounded rationality: Rational but limited by cognitive capacity.
    • Satisfice: Choosing a "good enough" solution.
  • Intuitive decision-making: Based on experience and feelings.

Innovative Decision-Making Techniques

  • Brainstorming: Interactive group to generate diverse ideas.
  • Evidence-based decision-making: Using best available evidence for smart decisions.
  • Rigorous debate: Encourages constructive conflict for better decisions.
  • Avoid groupthink: Prevent suppression of dissenting opinions.

Information Systems and Management

  • Information technology (IT): Methods for acquiring, organizing, manipulating, and transmitting information.
  • Impact of IT on business: Increased flexibility, collaboration, global exchange, and business opportunities.
  • Information system: Using IT to convert data into usable information.
  • Customer Relationship Management (CRM): Software for managing customer interactions.
  • Enterprise Resource Planning (ERP): Software that integrates operational and business processes.

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Description

Test your understanding of data, information, and their attributes. This quiz covers the qualities of information needed for effective decision-making and the challenges posed by incomplete information. Dive into concepts such as quality, timeliness, completeness, and relevance.

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