ECONOMICS

Detailed explanation-1: -Representation bias-describes how decision makers assess the likelihood of an event based on how closely it resembles other events and then draw analogies and see identical situations where they don’t exist.

Detailed explanation-2: -The four decision-making styles, analytical, directive, conceptual, and behavioral, are strategies leaders and individuals employ to make choices.

Detailed explanation-3: -A decision maker is the person or group of individuals who is responsible for making strategically important decisions based on a number of variables, including time constraints, resources available, the amount and type of information available and the number of stakeholders involved.

Detailed explanation-4: -Decision making can also be classified into three categories based on the level at which they occur. Strategic decisions set the course of organization. Tactical decisions are decisions about how things will get done. Finally, operational decisions are decisions that employees make each day to run the organization.

Detailed explanation-5: -Classify decisions and decision-making conditions. Certainty is a situation in which a manager can make accurate decisions because all outcomes are known. Risk is a situation in which a manager can estimate the likelihood of certain outcomes.