Biases & Errors in Thinking - Unit 2

Question 1

Confirmation Bias

Answer 1

The tendency to process information by looking for, or interpreting, information that is consistent with one’s existing beliefs. Unintentional and often results in ignoring inconsistent information.

Question 2

Mental Set

Answer 2

Tendency to only see solutions that have worked in the past.

Question 3

Functional Fixedness

Answer 3

Inability to realize that something known to have a particular use may also be used to perform other functions. Functional fixedness blocks one’s ability to use old tools in novel ways.

Question 4

Overconfidence Bias

Answer 4

Manifests in all corners of life, from politics to investment decisions the tendency to be more confident than correct - to overestimate the accuracy of our beliefs and judgments.

Question 5

Belief Perserverance

Answer 5

Belief perseverance is the tendency to cling to one’s initial belief even after receiving new information that contradicts or disconfirms the basis of that belief.

Question 6

Framing Bias

Answer 6

Individual’s choice from a set of options is influenced more by the presentation than the substance of the pertinent information. (marketing strategy)