1. Confidence tends to increase as _____ to omission (missing information) _____.

Select one:

a.

sensitivity; increases

b.

insensitivity; increases

c.

attention; decreases

d.

sensitivity; decreases

e.

calibration; increases

2._____ is a desire for definite knowledge, rather than ambiguity or confusion.

Select one:

a.

None of the above is correct.

b.

Bayes theorem

c.

Calibration theory

d.

Need for cognition

e.

Judgment convergence

3.Advising managers to be sensitive to new information and to revise prior judgments in light of new information reduces the effects of which of the following heuristics?

Select one:

a.

Confirmation bias

b.

Availability heuristic

c.

Representativeness heuristic

d.

Simulation heuristic

e.

Anchoring-and-adjustment heuristic

4.As the need for cognitive closure increases:

Select one:

a.

people make snap or quick conclusions.

b.

people consider more alternatives.

c.

people become more sensitive to inconsistent evidence.

d.

people exhibit lower levels of confidence with their decision.

e.

people consider larger amounts of information about each individual alternative.

5.Focusing on _____ leads decision makers to act _____.

Select one:

a.

benefits; risk seeking

b.

costs; risk averse

c.

None of the above is correct.

d.

benefits; risk averse

e.

losses; risk averse