BSE Bachelor of Science in Engineering Management: Strategic Decision Making 4

Question 1

Which cognitive bias causes engineering managers to give disproportionate weight to the first piece of information received when making strategic decisions?

Accepted Answer

Anchoring bias

Answer

Anchoring bias occurs when decision makers rely too heavily on the first information presented (the 'anchor'), which then skews subsequent judgments and estimates.

Question 2

A strategic decision involves 'escalation of commitment.' An engineering manager should recognize this as:

Accepted Answer

Continuing to invest in a failing course of action to justify past decisions

Answer

Escalation of commitment (sunk cost fallacy) is the tendency to continue investing in a failing project because of past investments rather than future prospects.

Question 3

In strategic decision making, a 'pre-mortem' analysis is conducted by:

Accepted Answer

Imagining a future project has failed and working backwards to identify potential causes

Answer

A pre-mortem (prospective hindsight) asks team members to assume the project has already failed and identify plausible reasons, surfacing risks before the decision is finalized.

Question 4

When using a weighted scoring model for project selection in engineering management, increasing the weight assigned to 'strategic alignment' will:

Accepted Answer

Favor projects that better support the organization's long-term strategic goals

Answer

Increasing the weight on strategic alignment amplifies the score contribution of that criterion, causing projects with high strategic fit to rank higher relative to those with better financial or technical scores.

Question 5

The 'Delphi technique' is used in strategic engineering management primarily to:

Accepted Answer

Achieve structured consensus from a panel of experts through iterative anonymous rounds

Answer

The Delphi technique gathers expert opinions through multiple anonymous questionnaire rounds with controlled feedback, converging toward group consensus while reducing social influence and groupthink.

BSE - Mgt Bachelor of Science in Engineering Management Practice Test

BSE - Mgt Bachelor of Science in Engineering Management Practice Test

BSE Bachelor of Science in Engineering Management: Strategic Decision Making 4