Decision Making Questions for NABARD Grade A 2025 | Set-3

Correct Answer – A. Pareto Analysis

Explanation:The Pareto analysis, or Pareto principle, is also known as the 80/20 rule because it is based on the idea that 80% of a project’s benefit can come from doing 20% of the work. Conversely, 80% of a situation’s problems can be traced to 20% of the causes.

Correct Answer – A. Decision Making

Explanation-Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.

Correct Answer – B. A heuristic can simplify the decision-making process

Explanation- Option A is wrong as “A rational decision is logical, objective and will maximize the likelihood of solving a problem or achieving a goal. That said, a decision can be arrived at through a rational process and still be wrong due to the decision maker lacking complete information about the situation.” Option B is correct as “Heuristics are mental shortcuts that allows people to solve problems and make judgments quickly and efficiently. These rule-of-thumb strategies shorten decision-making time and allow people to function without constantly stopping to think about their next course of action.”

Option C is wrong as the purpose of establishing criteria is to support a structured decision-making process and ensure that decisions made and alternatives selected support the desired outcomes and actions, as well as the Core Values and therefore all criteria are not relevant. Option D is wrong as The review stage is the last step of the decision-making process here, you will evaluate whether or not the specific outcome resolved the problem or opportunity you identified initially.

Correct Answer: A. he fails to identify the correct problem

Explanation- he fails to identify the correct problem: There are steps in the decision-making process and first and the most important is:

Identify the problem:To solve a problem, you must first determine what the problem actually is. You may think you know, but you need to check it out. Sometimes, it is easy to focus on symptoms, not causes.

Correct Answer – A. warranty

Explanation-As the person cares only for the performance, therefore criteria that covers the performance aspect of the bicycle are important and the warrant is the only criteria that is least relevant when compared with the other given options.

Correct Answer – D. a shortcut or rule of thumb that is used for decision making

Explanation- Heuristics are mental shortcuts that allows people to solve problems and make judgments quickly and efficiently. These rule-of-thumb strategies shorten decision-making time and allow people to function without constantly stopping to think about their next course of action.

Correct Answer – A. Directing

Explanation- A directing style incorporates a high degree of focus on tasks and a low degree of focus on the employee/manager relationship. In this leadership style, managers dictate to employees what they must do and expect them to accomplish their tasks, leaving little room for autonomy. Consultative style targets team building and uses the skills of others to create plans and make decisions. Leaders consult with their team to obtain their suggestions and opinions to help them make informed and strategic decisions.

In Participative, rather than employing a top-down approach to managing a team, everyone works together for the decision-making process and address company issues, sometimes employing an internal vote to address problems or challenges. A delegating style is a low task and relationship behaviour approach to leadership where a leader empowers an individual to exercise autonomy. Employing this approach entails providing the individual with the big picture, then trusting them to deliver agreed-upon results.

Correct Answer – C. Bounded rationality

Explanation- Bounded rationality refers to the limitations placed upon us by three main factors, cognitive limitations, information imperfection, and time constraints.

• Cognitive Limitations: Cognitive limitation refers to our inability as humans to process information in an optimal manner. In other words, we are unable to consider all available factors in our decision making.
• Information Imperfection: Information imperfection refers to the lack of information a consumer has.
• Time Constraint: When making a Decision, we often face time constraints.

Correct Answer – B. to make the achievement of goals as likely as possible

Explanation-Maximizing value is a question of achieving goals. When a decision maker maximizes value, he or she makes the decision that is most likely to achieve his or her goal. Being clear and logical, efficient, or simple are worthy goals for a decision maker, but they do not define maximizing value so they are incorrect responses for this question.

Correct Answer – D. speed

Explanation- Based on intuition, a manager is able to make decisions quick and effectively in complex and new situations. Intuition helps to identify a goal in life. It is a part of the subconscious and therefore can help identify dreams which match personal values and goals.