Data vs. Information in Decision Making
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Questions and Answers

Match the concepts related to data with their definitions:

Data = Raw, unanalyzed facts Information = Processed and analyzed data Quality = Accuracy and reliability of information Relevance = Usefulness of information for specific needs

Match the attributes of useful information with their descriptions:

Timeliness = Information must be available in real-time Completeness = Provides all necessary information for decision-making Relevance = Useful for particular circumstances Quality = Higher accuracy leads to higher utility

Match the concepts related to incomplete information:

Risk = Known outcomes with assignable probabilities Uncertainty = Unknown future outcomes Ambiguity = Multiple interpretations of information Time constraints = Limitations on decision evaluation time

Match the steps of the decision-making process with their descriptions:

<p>Identify a problem = Determine the discrepancy between conditions Analyze alternatives = Evaluate options against decision criteria Implement the alternative = Put the decision into action Evaluate decision effectiveness = Assess the outcome of the decision</p> Signup and view all the answers

Match the types of problems with their characteristics:

<p>Structured problems = Straightforward and easily defined Unstructured problems = New or unusual challenges Programmed decisions = Routine problems with established solutions Nonprogrammed decisions = Unique problems requiring customized solutions</p> Signup and view all the answers

Match the decision criteria attributes with their relevance in decision-making:

<p>Weight allocation = Prioritizing the importance of criteria Decision criteria = Factors important to resolving a problem Problem identification = Recognizing existing vs. desired conditions Alternative development = Creating various options for resolution</p> Signup and view all the answers

Match the characteristics of decision-making situations with their classifications:

<p>Structured decisions = Familiar and easily defined Unstructured decisions = Complex and novel problems Risky decisions = Known probabilities but uncertain outcomes Ambiguous decisions = Conflicting interpretations of information</p> Signup and view all the answers

Match the types of decision-making with their descriptions:

<p>Programmed decisions = Used for repetitive and familiar problems Nonprogrammed decisions = Applied to unique and complex situations Structured decision-making = Involves clear steps and criteria Unstructured decision-making = Requires intuition and creative thinking</p> Signup and view all the answers

Match the following types of decisions with their descriptions:

<p>Programmed decisions = Decisions made in response to recurring situations Nonprogrammed decisions = Unique decisions requiring custom solutions Procedures = Sequential steps for well-structured problems Policies = Guidelines for decision making</p> Signup and view all the answers

Match the conditions affecting decision failure with their descriptions:

<p>Certainty = All needed information is available Risk = Information allows probability estimation for outcomes Uncertainty = Incomplete information about alternatives Ambiguity = Goals and problems are unclear with vague alternatives</p> Signup and view all the answers

Match the following decision-making biases with their definitions:

<p>Overconfidence bias = Belief in one’s superior knowledge and performance Sunk costs error = Fixation on past investments in decision making Confirmation bias = Seeking out information that reaffirms past choices Hindsight bias = Belief that past outcomes could be predicted</p> Signup and view all the answers

Match the decision-making approaches with their characteristics:

<p>Rational decision making = Logical choices to maximize value Bounded rationality = Satisfying rather than maximizing solutions Intuitive decision making = Decisions based on experience and feelings Evidence-based decision making = Making informed decisions using the best facts</p> Signup and view all the answers

Match the innovative decision-making techniques with their definitions:

<p>Brainstorming = Interactive group suggesting alternatives spontaneously Rigorous debate = Constructive conflict improving decision quality Avoiding groupthink = Suppressing contrary opinions in groups Intuitive decision making = Quick apprehension based on experience</p> Signup and view all the answers

Match the following IT impacts on business with their descriptions:

<p>Portable offices = Remote access to information Increased collaboration = Better coordination in teams Leaner organizations = Improved efficiency in operations New business opportunities = Creation of innovative market solutions</p> Signup and view all the answers

Match the information systems with their functions:

<p>Customer Relationship Management (CRM) = Compile customer information for monitoring Enterprise Resource Planning (ERP) = Integrate operational processes across organizations Information technology (IT) = Techniques for manipulating information Information system = Convert data into information for decision making</p> Signup and view all the answers

Match the types of decision making with their advantages:

<p>Rational decision making = Leads to optimal choices based on analysis Bounded rationality = Practical approach considering limited information Intuitive decision making = Quick decisions based on experience Evidence-based decision making = Reduces uncertainty in decision making</p> Signup and view all the answers

Match the types of biases with their examples:

<p>Immediate gratification bias = Choosing immediate rewards over long-term benefits Anchoring effect = Fixating on initial data despite new information Self-serving bias = Taking credit for successes, blaming others for failures Sunk costs error = Continuing a losing proposition due to previous investments</p> Signup and view all the answers

Match the decision conditions with their typical characteristics:

<p>Certainty = All variables are known Risk = Potential outcomes can be estimated Uncertainty = Goals are known, but information is lacking Ambiguity = Goals are unclear and alternatives are hard to define</p> Signup and view all the answers

Match the types of programmed decisions with their attributes:

<p>Procedure = Step-by-step method for addressing problems Rule = Explicit directive for operations Policy = Strategic guideline for decisions Programmed decision = Repetitive, structured decision processes</p> Signup and view all the answers

Match the decision-making errors with their descriptions:

<p>Overconfidence bias = Exaggerated belief in one’s judgment Confirmation bias = Focusing on information that supports previous beliefs Hindsight bias = Misjudging prediction accuracy after the fact Sunk costs error = Considering past costs rather than future gains</p> Signup and view all the answers

Match the types of decision-making processes with practical applications:

<p>Rational = Systematic analysis for optimal outcomes Bounded rationality = Realistic decision in complex scenarios Intuitive = Rapid decision based on tacit knowledge Collaborative = Collective input from multiple stakeholders</p> Signup and view all the answers

Match the business impacts of information systems with their benefits:

<p>Increased efficiency = Streamlined operations and reduced waste Remote access = Enabling work from various locations Enhanced communication = Improved information exchange Data-driven decisions = Using analytics for informed choices</p> Signup and view all the answers

Match the definitions of decision-making approaches with their descriptions:

<p>Bounded rationality = Rationality limited by information processing abilities Intuitive decision making = Decisions made via gut feelings and experience Rational decision making = Logical approach assuming full information Evidence-based decision making = Decisions grounded in factual data</p> Signup and view all the answers

Study Notes

Data vs. Information

  • Data: Raw, unorganized facts.
  • Information: Processed, analyzed data.

Attributes of Useful Information

  • Quality: Accuracy and reliability determine quality.
  • Timeliness: Information needs to be available promptly.
  • Completeness: Complete information provides necessary data for effective decision-making.
  • Relevance: Information should be useful and relevant to the task.

Incomplete Information

  • Managers often lack complete information due to:
    • Risk: Known outcomes with assigned probabilities.
    • Uncertainty: Unknown probabilities and future outcomes.
    • Ambiguity: Information with multiple, conflicting interpretations.
    • Time constraints & information costs: Limited time and resources to assess all options.

Decision-Making Process

  • Identify the problem: Discrepancy between existing and desired states.
  • Identify decision criteria: Define important factors for problem resolution.
  • Weight criteria: Assign priorities to decision criteria.
  • Develop alternatives: Generate various solutions.
  • Analyze alternatives: Evaluate options using criteria.
  • Select an alternative: Choose the best option.
  • Implement the alternative: Put the decision into action.
  • Evaluate decision effectiveness: Assess if the problem was solved.

Types of Decisions

  • Structured problems: Familiar, clear-cut problems.
  • Unstructured problems: New, unusual challenges.
  • Programmed decisions: Apply established guidelines.
    • Procedure: Sequential steps to solve structured problems.
    • Rule: Explicit statements on what actions are permitted or prohibited.
    • Policy: Guidelines for decision-making.
  • Nonprogrammed decisions: Unique, custom-made solutions for unusual situations or opportunities

Conditions Affecting Decision Failure

  • Certainty: Complete information available.
  • Risk: Clear goals, estimated probabilities of success/failure.
  • Uncertainty: Goals known, incomplete information on alternatives & future events.
  • Ambiguity: Unclear goals/problem, ambiguous alternatives/outcomes.

Decision-Making Biases and Errors

  • Overconfidence bias: Overestimating knowledge and ability.
  • Immediate gratification bias: Choosing immediate rewards over long-term benefits.
  • Anchoring effect: Sticking to initial information.
  • Confirmation bias: Favoring information supporting pre-existing beliefs.
  • Hindsight bias: Believing outcomes were predictable in retrospect.
  • Sunk cost error: Focusing on past investments rather than future outcomes.
  • Self-serving bias: Claiming success for oneself and blaming failures on others.

Decision-Making Approaches

  • Rational decision-making: Logical, value-maximizing choices.
    • Assumptions of rationality: Objectivity, clarity in problem/goal, complete information.
  • Bounded rationality: Rational but limited by cognitive ability.
    • Satisfice: Accept a satisfactory solution rather than an optimal one.
  • Intuitive decision-making: Decision based on experience, feelings, and judgments.

Innovative Decision-Making Techniques

  • Brainstorming: Generating many alternatives through group interaction.
  • Evidence-based decision-making: Using data and evidence for informed decisions.
  • Rigorous debate: Encouraging constructive conflict to improve decisions.
  • Avoid groupthink: Preventing the suppression of dissenting opinions.

Information Systems and Management

  • Information technology (IT): Methods for acquiring, organizing, manipulating, transferring information.
  • Impact of IT on business: Portable offices, improved service, leaner organizations, collaboration, global exchange, customized solutions.
  • Information systems: Use IT to convert data to information for decision-making.
  • Customer Relationship Management (CRM) systems: Managing customer information to strengthen relationships.
  • Enterprise Resource Planning (ERP) systems: Integrating processes and data for improved organization productivity.

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Description

This quiz explores the differences between data and information, emphasizing the attributes that make information useful. It also covers the challenges of incomplete information faced by managers, including risk and uncertainty. Test your understanding of the decision-making process and the criteria involved.

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