IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 721:

  All of the following are tools used to evaluate solutions except

  A. Value analysis.

  B. Simulation.

  C. Linear programming.

  D. Decision theory.

  Correct Answer: A

  The analysis of facts and the development of solutions have been improved through the adoption of mathematical techniques. Although they will not provide useful solutions for poorly formulated problems, they will provide valuable results for well-defined quantitative problems. Some of these tools include simulation, linear programming, and decision theory. Value analysis is a technique utilized to identifj alternative courses of action, not for evaluation of problem solutions.

• Question 722:

  The human tendency to judge positively-presented information favorably and negatively- presented information unfavorably is known as

  A. Bounded rationality.

  B. Framing error.

  C. Escalation.

  D. Overconfidence.

  Correct Answer: B

  Three problems that arise in decision making are framing error, escalation, and overconfidence. Framing error is the human tendency to judge positively-presented information favorably and negatively-presented information unfavorably.

• Question 723:

  The evaluation technique of linear programming involves all of the following except

  A. Linear equations.

  B. Scarce resources.

  C. Accurate results.

  D. Objective function.

  Correct Answer: C

  Linear programming is a tool for allocating scarce resources in the presence of resource I constraints. The problem must be described by a system of linear equations. An objective function (usually cost or revenue) is maximized or minimized subject to constraint equations. The simultaneous solution to the system of `an equation maximizes profit (or minimizes cost). This description is seldom strictly accurate but provides useful approximations.

• Question 724:

  In the decision-making process, dentil\ting alternative courses of action can be accomplished by many methods. Which of the following is a method of idea generation that reports the first thought to come to mind in response to a given stimulus?

  A. Creative leap.

  B. Brainstorming.

  C. Forced relationship.

  D. Free association.

  Correct Answer: D

  Identifying alternative courses of action can be primary or secondary, or it can be creative. One of the creative methods is free association. Free association is a method of idea generation that reports the first thought to come to mind in response to a given stimulus. The objective is to express the content of consciousness without censorship or control.

• Question 725:

  The most common difficulty in problem solving is

  A. Obtaining information.

  B. identifying alternative courses of action.

  C. Defining the problem.

  D. Being aware of the existence of a problem.

  Correct Answer: C

  Defining the problem is the most common difficulty in problem solving. Pitfalls in defining problems include defining the problem according to a solution, concentrating on no pertinent areas, and defining problems by their symptoms.

• Question 726:

  Rational decision making involves all of the following steps except

  A. Defining the problem.

  B. Taking sunk costs into account.

  C. Choosing an alternative.

  D. Implementing the decision.

  Correct Answer: B

  The consideration of choices and the selection of the choice expected to give the best results are key parts of the planner's job. Rational decision making involves the following steps: defining the problem. Obtaining information, identifying alternative courses of action, making predictions about future costs, choosing and justifying an alternative, implementing the decision, and evaluating performance to provide feedback. One of the most common errors in decision making is taking sunk costs into account. Because sunk costs have already been incurred, they can play no role in rational decision making.

• Question 727:

  When making a decision to increase the robotic automation equipment in an existing face lily, a firm takes all of the following into consideration except

  A. Economies of scale.

  B. Opportunity cost.

  C. Technological efficiency.

  D. The initial cost of the current facility.

  Correct Answer: D

  A firm considers such factors as price, relationships with suppliers, product demand, avoidable future costs, and economies of scale, opportunity costs, technological efficiency, and the capital-labor ratio when evaluating the purchase of new equipment. The cost of the current facility would not be relevant because it is a sunk cost.

• Question 728:

  Rational decision making is a multistep process. In which stage of this process will effective communication to persons affected by the decision be most important?

  A. Evaluating possible solutions.

  B. Defining the problem.

  C. Following up.

  D. Gathering relevant information.

  Correct Answer: C

  A decision cannot be communicated to affected parties until it has been made. Effective communication is vital to successful implementation of the change resulting from the decision. Follow-up to evaluate the decision will determine whether the decision was correct. One reason desired results may not be obtained is lack of effective commune captions.

• Question 729:

  The term "escalation of commitment" refers to

  A. The process of continuing to fund old projects because of inadequate information or time to formally anal we the costs and benefits associated with continued investment.

  B. The decision maker increasing the resources to a new course of action if the employee can recommend alternatives such that the decision the new course of action as his/her own initiative.

  C. Committing to projects that have been shown to be successful and limiting the additional commitment of resources to projects that have been unsuccessful.

  D. The decision maker increasing the resources to the previous course of action in an effort to demonstrate that the previous course of action was appropriate.

  Correct Answer: D

  Consistency may be dysfunctional because it may result in inflexibility. The desire to avoid the inner conflict resulting from inconsistency may have adverse effects on decision making. For example, when a decision maker feels responsible for the failure of a course of action, (s) he may want to prove that the original decision was sound despite increasing evidence to the contrary. Thus, his/her commitment to a failed policy may escalate, and additional resources may be squandered.

• Question 730:

  Behavioral scientists have identified human tendencies that can erode the quality of decision making. Which of the following best describes a behavioral decision error referred to as "framing error"?

  A. Evaluating positive information favorably and negative information unfavorably.

  B. Getting locked into losing courses of action because of personal commitment.

  C. Evaluating the probabilities of outcomes as point estimates instead of ranges.

  D. Becoming overconfident because of past successes.

  Correct Answer: A

  How information is presented influences both its interpretation and the resulting behavior. Framing error is the tendency to evaluate positively presented information favorably and negatively presented information unfavorably.