9: problem solving

Question 1

What are the two types of models in decision making?

Answer 1

descriptive models
normative models

Question 2

What are the examples of compensatory models?

Answer 2

Additive
Additive-difference

Question 3

What are the examples of noncompensatory models?

Answer 3

Elimination by aspects
Conjunctive model

Question 4

What is the additive model?

Answer 4

sums the values of attributes for each alternative to arrive at an overall score

Question 5

What is the additive-difference model?

Answer 5

calculates the difference in each attribute, sum up the difference in scores

Question 6

What is the conjunctive model?

Answer 6

each alternative is examined one at a time. Selected if it satisfies the minimum criteria

Question 7

What is the elimination by aspects model?

Answer 7

examine all attributes for each alternative, eliminate alternative if there is one attribute that fails the minimum criteria

Question 8

What are heuristics? What kind of heuristics are present in decision making?

Answer 8

Mental shortcuts/general strategy that is often helpful, but does not guarantee correctness
- Availability heuristic
- Representative heuristic
- Anchoring and adjustment heuristic

Question 9

What is a decision frame?

Answer 9

framing effect: how a problem is being presented, framed can influence decision

Question 10

What are some ignored information?

Answer 10

• Sample size
• Base rates and prior probabilities
• Conjunction fallacy

Question 11

How does ignoring sample size affect decision making?

Answer 11

deciding that a larger sample deviates more from probabilities
bigger samples tend to deviate less from a calculated probability

Question 12

How does ignoring base rates and prior probabilities affect decision making?

Answer 12

making a decision based on prior probabilities
given probability and probability based on representative heuristic

Question 13

What is conjunction fallacy in decision making?

Answer 13

overestimating the probability of an overlap (2 conditions satisfied) based on the given information, due to representative heuristic

Question 14

What is expected value?

Answer 14

value of event * probability of occurrence

Question 15

What is expected utility?

Answer 15

replaces actual value with subjective value of outcome

Question 16

What is subjective expected utility?

Answer 16

replaces probabilities with subjective probabilities

Question 17

What is risk dimension?

Answer 17

diff people place diff emphasis on values

Question 18

To be successful in making a decision, you have to be:

Answer 18

• Recognition of situation
• Expertise/knowledge helps to reduce time considering alternatives
• make satisfactory decision rather than best alternative