Decision Making MCQ Quiz in मराठी - Objective Question with Answer for Decision Making - मोफत PDF डाउनलोड करा

The rational decision-making model is a logical, multi-step model used to choose between alternatives that follow an orderly path from problem identification to finding an appropriate solution. The idea of rational decision is easily noticeable in economic terms.

Assumptions of Rational Decision Making Model:

• A rational decision-making model brings a structured problem or reasonable thought process to the act of deciding.
• This model assumes that people will make choices from the alternatives that will provide maximum benefits and minimize any costs for reaching an agreed goal.
• This model assumes that people will choose the object that provides the greatest reward at the lowest cost.
• This model assumes that an individual has complete information on which to base a choice.
• This model assumes that there is a high level of certainty regarding the environment i.e. where the data can be collected and analyzed. 
• This model assumes that the individual has the cognitive ability, time, and resources to evaluate each alternative against the others.

Therefore, Incomplete information is NOT an assumption underpinning the rational decision-making model.

Important Points

•  The rational decision-making model assumes that decision-makers have access to complete and accurate information to evaluate all available options and make an optimal choice.
• In practice, decision-makers often face limited information, uncertainty, and ambiguity, which can impact their decision-making process. Therefore, "incomplete information" is not an assumption but rather a deviation from the idealized rational decision-making model.

The Process of Rational Decision Making:

This path includes:

• Formulating goal(s)
• Identifying the criteria for making the decision
• Identifying alternatives
• Performing analysis
• Making a final decision.

The correct answer is Inflation rates.

Key Points

• Inflation rates are a crucial aspect of the economic environment, influencing purchasing power and cost structures.
• The economic environment includes factors like GDP growth, interest rates, and exchange rates.
• These factors determine the overall economic health and business performance within a country.
• Businesses must adapt to fluctuations in these elements to remain competitive.

Additional Information

• A. Cultural trends are part of the socio-cultural environment, not the economic environment.
• B. Technological innovation is a factor in the technological environment.
• D. Legal frameworks are part of the legal environment of business.
• E. Political stability belongs to the political environment influencing businesses.

The correct answer is Porter’s Five Forces.

Key Points

• Porter’s Five Forces framework is used to analyze the competitive environment within an industry.
• The five forces include the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and industry rivalry.
• It helps in understanding the intensity of competition and profitability potential in an industry.
• Companies use this framework to formulate competitive strategies.

Additional Information

• A. SWOT Analysis focuses on internal strengths, weaknesses, opportunities, and threats.
• B. PESTEL Analysis evaluates macro-environmental factors like political, economic, social, technological, environmental, and legal aspects.
• D. Ansoff Matrix is used for growth strategies, focusing on market penetration, market development, product development, and diversification.
• E. Balanced Scorecard is a strategic management tool to measure organizational performance.

The correct answer is Loss Aversion Bias.

Key Points

• Loss Aversion Bias occurs when the prospect of loss leads to more cautious behavior than potential gains.
• This bias is a key element in risk-averse decision-making.
• It often results in avoiding opportunities that involve any level of risk, even when the reward is substantial.
• Examples include refusing to invest in stocks despite the potential for high returns due to fear of losses.

Additional Information

• A. Framing Bias is influenced by how information is presented rather than its content.
• B. Status Quo Bias prefers maintaining the current state rather than changing it.
• C. Availability Bias focuses on readily recalled information, irrespective of relevance.
• D. Anchoring Bias relies excessively on initial information, affecting subsequent decisions.

The correct answer is Escalation of Commitment Bias.

Key Points

• Escalation of Commitment Bias leads individuals to persist with failing actions.
• This bias results from an unwillingness to admit mistakes or sunk costs.
• It commonly occurs in financial investments, projects, or relationships.
• Examples include continuing to fund an unprofitable project due to prior investments.

Additional Information

• A. Loss Aversion Bias is a preference for avoiding losses rather than acquiring equivalent gains.
• B. Confirmation Bias involves seeking information that aligns with existing beliefs.
• D. Framing Bias influences decisions based on how information is presented.
• E. Status Quo Bias favors maintaining the current state rather than opting for change.

The correct answer is 1, 4, 2, 3.

Key Points

• Brainstorming is the simplest technique, primarily used for generating ideas without a structured analysis.
• SWOT Analysis is a step more complex, involving structured evaluation of strengths, weaknesses, opportunities, and threats.
• Fishbone Diagram (Ishikawa) adds complexity by analyzing cause-and-effect relationships, requiring more detailed analysis.
• Analytic Hierarchy Process (AHP) is the most complex, involving multi-criteria decision-making with weighted factors.

The correct answer is Problem Decomposition.

Key Points

• Problem Decomposition is an approach that breaks down complex problems into smaller, more manageable components.
• Each component is addressed individually, which simplifies the decision-making process and allows for a more focused analysis.
• This approach is particularly useful in project management, systems analysis, and complex problem-solving scenarios.
• It helps decision-makers manage complexity by dealing with one part of the problem at a time, eventually leading to a comprehensive solution.

Additional Information

• Problem Decomposition: A decision-making technique that involves breaking down a complex problem into smaller, more manageable parts, each of which is addressed individually to simplify the overall decision-making process.
• Systems Analysis: The process of studying and analyzing complex systems by breaking them down into their constituent parts to understand and improve their functionality.

The correct answer is Scenario Planning.

Key Points

• Scenario Planning is a strategic decision-making approach that involves creating and analyzing multiple future scenarios to assess potential risks and opportunities.
• Decision-makers use these scenarios to test the robustness of their strategies under different conditions.
• This approach helps organizations prepare for uncertainty by considering various possible futures and developing flexible strategies.
• Scenario Planning is widely used in business, government, and military planning.

Additional Information

• Scenario Planning: A method used to explore and prepare for multiple potential futures by creating detailed and plausible scenarios that help decision-makers understand the implications of different strategies under varying conditions.
• Strategic Planning: The process of defining an organization's direction and making decisions on allocating resources to pursue this direction, often involving scenario planning to address uncertainty.

The correct answer is Game Theory.

Key Points

• Game Theory is a decision-making approach that analyzes strategic interactions where the outcomes depend on the actions of multiple decision-makers.
• It is particularly useful in competitive environments where each player's decision affects the others.
• The theory provides frameworks like Nash Equilibrium to predict the outcomes of strategic decisions.
• Game Theory is widely used in economics, political science, and business strategy.

Additional Information

• Game Theory: A mathematical framework for analyzing situations where the outcome of a decision depends on the choices of others, used to study competitive and cooperative interactions in economics, political science, and other fields.
• Nash Equilibrium: A concept within Game Theory where no player can benefit by unilaterally changing their strategy if the strategies of the others remain unchanged.

The correct answer is Group Polarization.

Key Points

• Group Polarization occurs when group discussions lead to decisions that are more extreme than the initial inclinations of the group members.
• This can happen in Majority Rule decisions, where the dominant opinion becomes more pronounced.
• It can lead to suboptimal decisions if the majority opinion is not the best one.
• Group Polarization is particularly common in homogenous groups.

Additional Information

• Group Polarization: A phenomenon where group discussions lead to decisions that are more extreme than the initial inclinations of the group members, often resulting in more risky or conservative outcomes.
• Information Cascade: A process in decision-making where individuals, having observed the actions of those before them, decide to follow the same actions, ignoring their private information or signals.