1)

The classical decision-making model is:

a A descriptive model explaining how people actually make decisions

b A prescriptive model describing how people should make decisions

c Neither a or b above

2)

A source of error in decision making can be the tendency of decision makers to invest additional time, money or effort into what are essentially bad decisions. This error is referred to as:

a Availability heuristic

b Anchoring & adjustment heuristic

c Representativeness heuristic

d Escalation of commitment

3)

When Andrea Jung, CEO of Avon, pulled decision making away from country managers into the corporate office to solve the problem of falling global sales in 2000 she was:

a Centralizing

b De-centralizing

c Motivating managers

d Reducing hierarchy