Analytical Decision Making MCQs: Making decisions based on given information and conditions

  1. A company needs to choose between three suppliers based on cost and reliability. Which factor is most critical?
    • A. Cost
    • B. Reliability
    • C. Both equally important
    • D. Neither
    • Answer: C
  2. What is the first step in the decision-making process?
    • A. Evaluating alternatives
    • B. Defining the problem
    • C. Implementing the decision
    • D. Monitoring results
    • Answer: B
  3. Which decision-making model involves setting specific criteria to judge alternatives?
    • A. Rational model
    • B. Bounded rationality model
    • C. Incremental model
    • D. Garbage can model
    • Answer: A
  4. What technique involves making decisions based on previous experiences and intuition?
    • A. Data analysis
    • B. Heuristics
    • C. Simulation
    • D. Optimization
    • Answer: B
  5. When faced with a decision under uncertainty, what tool can help visualize different outcomes?
    • A. SWOT analysis
    • B. Decision tree
    • C. Pareto chart
    • D. Gantt chart
    • Answer: B
  6. What does SWOT stand for in decision-making?
    • A. Strengths, Weaknesses, Options, Threats
    • B. Strategies, Weaknesses, Opportunities, Threats
    • C. Strengths, Weaknesses, Opportunities, Threats
    • D. Strengths, Workflows, Opportunities, Tactics
    • Answer: C
  7. Which of the following is NOT a quantitative decision-making tool?
    • A. Linear programming
    • B. Simulation
    • C. Heuristics
    • D. Decision matrix
    • Answer: C
  8. What is the primary goal of a cost-benefit analysis?
    • A. To minimize costs
    • B. To maximize benefits
    • C. To compare the costs and benefits of an action
    • D. To eliminate risk
    • Answer: C
  9. In decision-making, what is a “satisficing” strategy?
    • A. Choosing the optimal solution
    • B. Choosing the first satisfactory solution
    • C. Exploring all possible solutions
    • D. Ignoring all risks
    • Answer: B
  10. What does the term “bounded rationality” imply?
    • A. Unlimited cognitive resources
    • B. Decision making with limited information
    • C. Rational decisions without constraints
    • D. Optimal decision making
    • Answer: B
  11. Which method is used to prioritize tasks by comparing their urgency and importance?
    • A. Pareto analysis
    • B. Eisenhower matrix
    • C. PERT chart
    • D. Gantt chart
    • Answer: B
  12. What is the Delphi technique used for in decision-making?
    • A. Generating random solutions
    • B. Reaching consensus among experts
    • C. Evaluating past decisions
    • D. Identifying weaknesses
    • Answer: B
  13. Which of the following is a qualitative decision-making technique?
    • A. Linear regression
    • B. Monte Carlo simulation
    • C. Scenario analysis
    • D. Economic order quantity
    • Answer: C
  14. A decision matrix is primarily used to:
    • A. Determine cost-effectiveness
    • B. Compare multiple alternatives
    • C. Schedule project tasks
    • D. Assess risk levels
    • Answer: B
  15. In risk management, what does “mitigation” refer to?
    • A. Accepting the risk
    • B. Reducing the impact of the risk
    • C. Ignoring the risk
    • D. Transferring the risk
    • Answer: B
  16. Which of the following involves evaluating decisions based on their possible outcomes and associated probabilities?
    • A. Cost-benefit analysis
    • B. Decision theory
    • C. SWOT analysis
    • D. Benchmarking
    • Answer: B
  17. When a decision must be made quickly, which method is often used?
    • A. Rational decision-making
    • B. Incremental decision-making
    • C. Heuristic decision-making
    • D. Data-driven decision-making
    • Answer: C
  18. What is the primary purpose of a Gantt chart?
    • A. To allocate resources
    • B. To analyze risks
    • C. To track project schedules
    • D. To compare alternatives
    • Answer: C
  19. In a decision tree, what do the branches represent?
    • A. Different possible outcomes
    • B. Costs associated with decisions
    • C. Decision points
    • D. Random events
    • Answer: A
  20. What is the main advantage of using a decision support system (DSS)?
    • A. Reduces the need for human decision-making
    • B. Increases data storage capacity
    • C. Enhances decision-making with relevant data and models
    • D. Automates business processes
    • Answer: C
  21. Which analysis technique is used to evaluate the financial implications of a decision?
    • A. Sensitivity analysis
    • B. Break-even analysis
    • C. SWOT analysis
    • D. PERT analysis
    • Answer: B
  22. What does PERT stand for?
    • A. Project Evaluation Review Technique
    • B. Performance Efficiency Review Technique
    • C. Project Execution and Review Technique
    • D. Performance Evaluation and Resource Technique
    • Answer: A
  23. What type of decision-making involves making decisions based on data analysis and interpretation?
    • A. Intuitive decision-making
    • B. Data-driven decision-making
    • C. Incremental decision-making
    • D. Random decision-making
    • Answer: B
  24. Which factor is critical in evaluating the feasibility of an alternative in decision-making?
    • A. Popularity
    • B. Cost
    • C. Feasibility
    • D. Alignment with organizational goals
    • Answer: D
  25. Which decision-making model emphasizes short-term, small, incremental changes?
    • A. Rational model
    • B. Incremental model
    • C. Bounded rationality model
    • D. Garbage can model
    • Answer: B
  26. In decision-making, what is a “trade-off”?
    • A. A solution with no disadvantages
    • B. Choosing one benefit over another
    • C. Ignoring all alternatives
    • D. Selecting the most expensive option
    • Answer: B
  27. Which of the following is an example of a structured decision?
    • A. Choosing a career path
    • B. Selecting a vendor based on a fixed criteria list
    • C. Deciding on a marketing strategy
    • D. Planning a family vacation
    • Answer: B
  28. When is it best to use a heuristic approach in decision-making?
    • A. When data is abundant and clear
    • B. When time is limited and decisions are complex
    • C. When all options are equally viable
    • D. When seeking optimal solutions
    • Answer: B
  29. Which process involves continuously improving and refining decisions?
    • A. Static decision-making
    • B. Dynamic decision-making
    • C. Incremental decision-making
    • D. Comprehensive decision-making
    • Answer: B
  30. What is a key characteristic of strategic decision-making?
    • A. Short-term focus
    • B. Operational in nature
    • C. High impact on overall direction
    • D. Routine and repetitive
    • Answer: C
  31. What type of decision is typically repetitive and can be handled using a set procedure?
    • A. Strategic decision
    • B. Tactical decision
    • C. Operational decision
    • D. Unstructured decision
    • Answer: C
  32. Which decision-making bias involves over-relying on the first piece of information encountered?
    • A. Anchoring bias
    • B. Confirmation bias
    • C. Hindsight bias
    • D. Availability bias
    • Answer: A
  33. What does the term “escalation of commitment” refer to?
    • A. Reducing investment in failing projects
    • B. Continuing to invest in failing projects
    • C. Abandoning successful projects prematurely
    • D. Making decisions under pressure
    • Answer: B
  34. Which method uses a scoring system to rank different decision options?
    • A. SWOT analysis
    • B. Decision matrix
    • C. PERT chart
    • D. Gantt chart
    • Answer: B
  35. Which decision-making tool helps identify the most significant factors in a set of data?
    • A. Pareto analysis
    • B. Scenario analysis
    • C. PERT analysis
    • D. SWOT analysis
    • Answer: A
  36. What is the primary benefit of using a simulation in decision-making?
    • A. Reduces costs
    • B. Increases accuracy of outcomes prediction
    • C. Eliminates risk
    • D. Guarantees optimal decisions
    • Answer: B
  37. In decision theory, what does “utility” refer to?
    • A. The cost of an option
    • B. The benefit derived from an option
    • C. The likelihood of an option’s success
    • D. The time required to implement an option
    • Answer: B
  38. Which bias involves looking for information that confirms one’s preconceptions?
    • A. Anchoring bias
    • B. Confirmation bias
    • C. Hindsight bias
    • D. Availability bias
    • Answer: B
  39. Which decision-making technique focuses on reducing uncertainty by using probabilities?
    • A. SWOT analysis
    • B. Sensitivity analysis
    • C. Scenario planning
    • D. Decision theory
    • Answer: D
  40. What is the main advantage of group decision-making?
    • A. Speed
    • B. Diverse perspectives
    • C. Cost efficiency
    • D. Simplified process
    • Answer: B
  41. Which of the following best describes “heuristics”?
    • A. Complex algorithms
    • B. Simplified rules of thumb
    • C. Detailed procedures
    • D. Precise calculations
    • Answer: B
  42. What is a common disadvantage of using the rational decision-making model?
    • A. It requires too little information
    • B. It can be time-consuming
    • C. It ignores objectives
    • D. It is based on intuition
    • Answer: B
  43. Which decision-making bias involves assuming the future will resemble the past?
    • A. Availability bias
    • B. Anchoring bias
    • C. Confirmation bias
    • D. Representativeness bias
    • Answer: D
  44. What is a primary goal of using a decision support system (DSS)?
    • A. To automate decision-making
    • B. To enhance decision quality with data and models
    • C. To eliminate the need for human input
    • D. To speed up decision-making
    • Answer: B
  45. Which approach to decision-making involves looking at how decisions align with the overall strategic goals?
    • A. Tactical decision-making
    • B. Strategic decision-making
    • C. Operational decision-making
    • D. Incremental decision-making
    • Answer: B
  46. Which type of decision-making model assumes that decision-makers are rational and aim to maximize outcomes?
    • A. Bounded rationality model
    • B. Incremental model
    • C. Rational model
    • D. Garbage can model
    • Answer: C
  47. What is the main focus of scenario planning?
    • A. Minimizing costs
    • B. Predicting future scenarios and preparing responses
    • C. Allocating resources efficiently
    • D. Optimizing current processes
    • Answer: B
  48. In decision-making, what does “opportunity cost” refer to?
    • A. The financial cost of an alternative
    • B. The time required to pursue an alternative
    • C. The benefit of the next best alternative foregone
    • D. The risk associated with an alternative
    • Answer: C
  49. Which decision-making model is most likely used in conditions of high uncertainty and complexity?
    • A. Rational model
    • B. Incremental model
    • C. Bounded rationality model
    • D. Garbage can model
    • Answer: D
  50. What is the primary benefit of using a cost-benefit analysis?
    • A. It simplifies the decision-making process
    • B. It helps quantify the financial implications of decisions
    • C. It eliminates the need for qualitative judgment
    • D. It guarantees successful outcomes
    • Answer: B