Analytical Decision Frameworks Flashcards
7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Analytical Decision Frameworks flashcards as text
Which of the following BEST describes the purpose of a morphological analysis in managerial decision-making?
Answer: Systematically exploring all possible combinations of solution components
Morphological analysis creates a matrix of all possible combinations of key parameters, enabling systematic exploration of solution space for complex problems.
A manager observes that her team consistently underestimates project completion time despite detailed planning. This is BEST explained by:
Answer: Planning fallacy
The planning fallacy describes the tendency to underestimate time, costs, and risks for future tasks while overestimating benefits, even with past project data available.
In a multi-attribute utility theory (MAUT) framework, 'utility' scores are assigned to alternatives in order to:
Answer: Convert qualitative preferences into comparable numerical values
MAUT quantifies decision-makers' preferences by converting subjective values across multiple attributes into utility scores that can be aggregated and compared.
A manager applies force field analysis (Lewin) to a proposed organizational change. 'Resistance from long-tenured employees' would be classified as:
Answer: A restraining force opposing the change
In Lewin's force field analysis, restraining forces are factors that hinder or oppose the proposed change, such as employee resistance.
When applying the Delphi method to a complex forecasting decision, the manager's ROLE is to:
Answer: Facilitate anonymous rounds of expert input and feedback until consensus emerges
The Delphi method requires the facilitator to collect anonymous expert opinions iteratively, share aggregated feedback, and repeat until convergence is achieved.
A manager evaluating capital investment options calculates a net present value (NPV) of -$15,000 for Project A and +$42,000 for Project B. Analytically, this means:
Answer: Project B is expected to create more value than the required rate of return justifies
A positive NPV indicates that Project B's discounted future cash flows exceed its cost, creating net value above the required return, while Project A destroys value.
Which of the following is the MOST significant limitation of using historical data as the primary basis for analytical decision-making?
Answer: Past patterns may not accurately predict future outcomes in dynamic environments
Relying heavily on historical data assumes that past conditions will continue, which can be misleading in rapidly changing or unprecedented situations.