Practice Test Geeks(CSM) Certified Strategic Manager Practice Test
← All CSM Flashcard Decks

Problem Solving & Decision Making Flashcards

7 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Problem Solving & Decision Making flashcards as text

  1. A strategic manager must choose between two projects with equal expected returns but different risk profiles. Which decision-making framework best addresses this scenario?

    Answer: Expected utility theory with risk preference weighting

    Expected utility theory accounts for a decision-maker's risk preference, allowing comparison of options beyond simple expected value.

  2. During root cause analysis, a team repeatedly identifies symptoms rather than underlying causes. Which technique forces deeper investigation?

    Answer: The 5 Whys method

    The 5 Whys iteratively asks 'why' to drill past symptoms to the root cause of a problem.

  3. A company faces a decision under conditions where outcome probabilities are unknown. This situation is best described as:

    Answer: Ambiguity

    Ambiguity (or uncertainty) occurs when neither outcomes nor their probabilities are known, unlike risk where probabilities can be estimated.

  4. Which cognitive bias causes managers to overweight information received first when evaluating strategic options?

    Answer: Anchoring bias

    Anchoring bias occurs when the first piece of information encountered disproportionately influences subsequent judgments.

  5. A manager applies satisficing rather than optimizing when making a decision. This means they:

    Answer: Choose the first option that meets a minimum acceptable threshold

    Satisficing, a concept from Herbert Simon's bounded rationality, means selecting an option that is 'good enough' rather than the best possible.

  6. When a strategic problem is poorly defined and stakeholders disagree on both the problem and solution, it is classified as a:

    Answer: Wicked problem

    Wicked problems are characterized by unclear problem definitions, conflicting stakeholder views, and no definitive solution.

  7. A decision tree is most useful in strategic problem solving when:

    Answer: Sequential decisions involve probabilistic outcomes

    Decision trees map sequential choices and their probabilistic outcomes, enabling calculation of expected values for each decision path.