CMAT Critical Thinking and Decision Making 3

Question 1

The 'satisficing' approach to decision making, proposed by Herbert Simon, means:

Accepted Answer

Selecting the first acceptable solution rather than exhaustively seeking the best one

Answer

Satisficing refers to choosing a solution that is 'good enough' rather than searching exhaustively for the optimal one, recognizing practical limits of time and information.

Question 2

Which of the following is a key characteristic of 'wicked problems'?

Accepted Answer

They are complex, ill-defined challenges with conflicting stakeholder values

Answer

Wicked problems are complex, ill-defined challenges with no single correct solution, often involving conflicting stakeholder values and incomplete or contradictory information.

Question 3

A 'SWOT analysis' is primarily used to:

Accepted Answer

Assess an organization's strategic position relative to its environment

Answer

SWOT analysis evaluates internal strengths and weaknesses alongside external opportunities and threats to support strategic decision making.

Question 4

Which of the following best represents 'divergent thinking'?

Accepted Answer

Generating multiple possible solutions to an open-ended problem

Answer

Divergent thinking is a creative thought process that generates multiple ideas or solutions for an open-ended problem, contrasting with convergent thinking that seeks a single correct answer.

Question 5

In decision making, 'risk aversion' describes a preference for:

Accepted Answer

A certain outcome over an uncertain one with the same expected value

Answer

A risk-averse decision maker prefers a certain outcome over a gamble with an equal or even slightly higher expected value, prioritizing security and predictability over potential gain.

CMAT - Common Management Admission Test Practice Test

CMAT - Common Management Admission Test Practice Test

CMAT Critical Thinking and Decision Making 3