Chapter 6

QUESTION 1
1. Nolan likes to dress in the most trendy and flashiest styles. Due to the concept of
perception, in which setting are you least likely to notice what Nolan is wearing?
at a nightclub
at the office
at the mall
at a restaurant
at school
0.2 points
QUESTION 2
1. Students living in one residence come to feel that their residence is the “best”
and then believe that the smartest and most socially engaging students live there. This
is an example of ________.
the halo effect
the contrast effect
the hindsight bias
the social identity effect
stereotyping
0.2 points
QUESTION 3
1. Your boss never gives you the benefit of the doubt. When you arrived late from
lunch, he assumed that you had simply taken too much time. He never considered that
the elevators were not working that day and the fact that you had to walk up 10 flights of
stairs. Your boss is guilty of ________.
a self-serving bias
selective perception
the fundamental attribution error
inconsistency
stereotyping
0.2 points
QUESTION 4
1. Whenever Jane is successful she takes full credit for her success, but whenever
she is unsuccessful she attributes her failure to bad luck or blames one of her fellow
employees. She is guilty of the ________.
fundamental attribution error
attribution bias
confirmation bias
distinction bias
self-serving bias
0.2 points
QUESTION 5
1. ________ is the process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment.
Cognitive dissonance
Environmental analysis
Social verification
Emotional labour
Perception
1. Decision makers construct simplified models that extract the essential features
from problems without capturing all their complexity. That is, they operate within the
confines of ________.
optimal decision making
intuitive decision making
bounded rationality
rationality
common sense
1. While negotiating salary with your prospective employer, if you suggest an initial
target salary of $55,000, your employer will consider $50,000 to $60,000 a reasonable
range for negotiation, but if you mention $55,650, your employer is more likely to
consider $55,000 to $56,000 the range of likely values for negotiation. In this example
your employer is exhibiting the ________ bias.
availability
anchoring
hindsight
confirmation
impact
QUESTION 2
1. With reference to decision making, satisficing involves ________.
identifying all possible alternative decisions
seeking solutions that are satisfactory and sufficient
evaluating all possible alternatives objectively

selecting the best option with the highest utility
using an unconscious decision-making process created from distilled experience
Vance recently took over the role of director of an academic unit at a large university.
While Vance has a Type A personality and is very organized and direct, his predecessor
was very Type B and liked to go with the flow. Due to his predecessor’s personality, it is
likely Vance will experience a long period of difficult change due to which phenomena?
utilitarianism
formal regulation
ethics
historical precedent
anchoring bias
QUESTION 1
1. Tom knows that the title insurance company made a mistake on his property title.
Because of their mistake, his neighbour now has access to an easement road through the 25
acres located at the back of his property. He can’t use the acreage for pasture, because his
neighbour insists that the gates remain open. The title company has offered a $40,000
settlement. Tom has decided to take the settlement rather than possibly lose in court if he were
to sue the title company for more money. Tom’s decision is based on ________.
hindsight bias
availability bias
risk aversion
randomness error
escalation of commitment
QUESTION 3
1. Two people see the same thing at the same time yet interpret it differently. In this
situation, factors that operate to shape their dissimilar perceptions reside in the ________.
perceivers
target
timing
context
situation
0.2 points
QUESTION 4
1. You are part of a group, making a decision about whether it is appropriate to discontinue
research on a new drug. This new drug would save lives, but it is uncertain whether you can
develop it within a reasonable time frame and at a reasonable cost. Your firm has already spent
a small fortune on this drug. You have gathered so much information in preparation to making
the decision that you are unable to sort the good information from the superfluous data. You just
feel that this project has merit. What form of decision making are you using if you decide to
continue the project because you feel that the project has merit?
optimization
intuitive
rational
satisficing
bounded rationality
0.2 points
QUESTION 5
1. Which of the following statements is not an example of stereotyping?
There is no need to offer child care to him; men aren’t interested in child care.
Don’t hire an older worker; they can’t learn new skills.
She was good at her last job, so she will be good at this one.
She won’t relocate for a promotion, since women don’t relocate.
The new hire will be emotionally insensitive, since he is a man.
QUESTION 5
1. ________ is the process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment.
Cognitive dissonance
Environmental analysis
Social verification
Emotional labour
Perception

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QUESTION 1

seeking solutions that are satisfactory and sufficient

evaluating all possible alternatives objectively

using an unconscious decision-making process created from distilled experience

Don’t hire an older worker; they can’t learn new skills.

She won’t relocate for a promotion, since women don’t relocate.

The new hire will be emotionally insensitive, since he is a man.

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