Organizational Decision Making Theories
18 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main characteristic of the Monte Carlo Simulation approach to decision making?

  • Relies on measurable input data
  • Assumes patterns in success or failures
  • Relies on subjective estimates
  • Uses randomness to assign weightings (correct)

    • How does the Monte Carlo Simulation differ from the approaches discussed in earlier chapters?

  • It uses randomness to assign weightings (correct)
  • It uses subjective estimates of likelihoods
  • It uses measurable input data
  • It relies on assumed patterns in success or failures

    • What does the Cognitive School of Thought of Strategy emphasize?

  • Success patterns in the environment
  • Objective decision making
  • Quantitative analysis
  • Subjective construction of individual reality (correct)

    • In the Monte Carlo Simulation, how are weightings assigned to potential outcomes?

    <p>Using randomness</p> Signup and view all the answers

    What aspect of decision making does the Monte Carlo Simulation not rely on?

    <p>Measurable input data</p> Signup and view all the answers

    Which method allows managers to make recommended decisions without considering the context of those decisions?

    <p>Monte Carlo Simulation</p> Signup and view all the answers

    What is the key role that randomness plays in the Monte Carlo Simulation?

    <p>Assigning weightings to outcomes</p> Signup and view all the answers

    In what way does the Monte Carlo Simulation differ from relying on subjective estimates?

    <p>It relies on randomness for assigning weightings</p> Signup and view all the answers

    What aspect of strategic decision making does the Cognitive School of Thought emphasize?

    <p>Subjective construction of individual reality</p> Signup and view all the answers

    How does the Monte Carlo Simulation assign weightings to potential outcomes?

    <p>By utilizing randomness</p> Signup and view all the answers

    In the context of the Monte Carlo Simulation, what role do forecast probabilities play?

    <p>Affecting subjective estimates of likelihoods</p> Signup and view all the answers

    What differentiates the Monte Carlo Simulation from relying on assumed patterns in the environment?

    <p>Use of randomness to assign weightings</p> Signup and view all the answers

    Which methodology does the Monte Carlo Simulation not rely on for decision making?

    <p>Patterns in success or failures</p> Signup and view all the answers

    What does the Monte Carlo Simulation use to generate likely combinations of cash flow?

    <p>Random numbers in simulations</p> Signup and view all the answers

    Which approach to decision making does the Monte Carlo Simulation deviate from by not relying on measurable input data?

    <p>'Objective data analysis'</p> Signup and view all the answers

    What characteristic of the Monte Carlo Simulation distinguishes it from methods that rely on subjective estimates?

    <p>'Randomness in assigning weightings'</p> Signup and view all the answers

    'Cash in' and 'Cash out' are used in the Monte Carlo Simulation to represent what aspects of decision-making?

    <p>'Potential outcomes with weightings'</p> Signup and view all the answers

    How do likely combinations of cash flow occur more frequently in the Monte Carlo Simulation?

    <p>By assigning random weightings to outcomes</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser