Problem Solving & Decision Making Flashcards

A manager must choose between a guaranteed $50,000 gain and a 60% chance of gaining $90,000. A risk-averse manager would most likely:

Answer: Choose the guaranteed $50,000 to avoid uncertainty

Risk-averse decision-makers prefer certain outcomes over probabilistic ones even when the expected value of the risky option is higher.

The Delphi technique for group decision-making is characterized by:

Answer: Anonymous iterative surveys with controlled feedback between rounds

The Delphi technique uses anonymous questionnaires and structured feedback rounds to build expert consensus without social pressure.

Which problem-solving framework uses Define, Measure, Analyze, Improve, and Control phases?

Answer: DMAIC

DMAIC is a data-driven Six Sigma framework used to improve existing processes by systematically eliminating defects.

A Pareto chart is used in problem-solving primarily to:

Answer: Identify the 20% of causes responsible for 80% of problems

A Pareto chart applies the 80/20 rule to prioritize the few causes that drive the majority of problems.

When using the nominal group technique, what happens after each member silently generates ideas?

Answer: Each idea is shared in round-robin fashion and then discussed and ranked

NGT involves silent idea generation, structured round-robin sharing, group discussion for clarification, and then individual ranking.

Which type of problem-solving error occurs when a manager solves the wrong problem precisely?

Answer: Type III error

A Type III error (also called the 'error of the third kind') means solving a well-defined problem that was not the actual problem to solve.

In Kepner-Tregoe problem analysis, what is the key distinguishing question that separates IS from IS NOT?

Answer: What exactly is and is not affected by the problem?

Kepner-Tregoe uses IS/IS NOT comparisons to precisely define what is and is not part of the problem, narrowing possible causes.