8.2: How Do We Make Decisions and Solve Problems?

Question 1

Reasoning

Answer 1

Using information to determine if a conclusion is valid or reasonable

Question 2

Decision Making

Answer 2

Attempting to select the best alternative among several options

Question 3

Problem Solving

Answer 3

Finding a way around an obstacle to reach a goal

Question 4

Deductive Reasoning

Answer 4

Using general rules to draw conclusions about specific instances

Question 5

Inductive Reasoning

Answer 5

Using specific instances to draw conclusions about general rules

Question 6

Syllogism

Answer 6

Logical argument that consists of a premise and a conclusion: if A is true, than B is true. Deductive reasoning tasks are often expressed as syllogisms

Question 7

Normative Models

Answer 7

models of decision making that view people as optimal decision makers, meaning we always select the choice that yields the highest gain

Question 8

Descriptive Models

Answer 8

models saying that people tend to misinterpret and misrepresent the probabilities underlying many decision-making scenerios

Question 9

Expected Utility Model

Answer 9

Normative model of how we should make decisions, saying that we make decisions by considering the possible alternatives and choosing the most desirable one

Question 10

Hueristics

Answer 10

Shortcuts (rules of thumb or informal guidelines) used to reduce the amount of thinking that is needed to make decisions

Question 11

Algorithm

Answer 11

A procedure that, if followed correctly, will always yield the correct answer–different from a hueristic

Question 12

Framing

Answer 12

The effect of presentation on how information is perceived

Question 13

Availability Heuristic

Answer 13

Making a decision based on the answer that most easily comes to mind

Question 14

Representativeness Heuristic

Answer 14

Placing a person or object in a category if that person or object is similar to one’s prototype for that category

Question 15

Prospect Theory

Answer 15

(1) A person’s wealth affects his or her choices. (2) Because losses feel much worse than gains feel good, a person will try to avoid situations that involve losses

Question 16

Loss Aversion

Answer 16

Losing is much worse than gaining is good

Question 17

Affective Forecasting

Answer 17

Predicting accurately how you will feel about something in the future. People are bad at this, tending to overestimate the extent to which negative events will affect them in the future

Question 18

Psychological Reactance

Answer 18

Response that occurs when we are told what to do and what not to do, and react by wanting to do exactly what is forbidden to us, even when we had no strong preferences before our choices were restricted.

Question 19

Satisfiers

Answer 19

Life life according to a philosophy of “good enough”–look around until they find something that most closely matches what they want, and buy it. Like good things, but do not worry if they are not the best

Question 20

Maximizers

Answer 20

Always seek to make the best possible choices, and therefore have much more trouble making choices

Question 21

Insight

Answer 21

The sudden realization of the solution to a problem

Question 22

Reconstruction

Answer 22

A new way of thinking about a problem that aids its solution

Question 23

Mental Sets

Answer 23

Problem solving strategies that have worked in the past