Biases in thinkig and decision-making

Question 1

Thinking

Answer 1

The process of using knowledge and information to make plans, interpret the world, and make predictions about the world in general.

Question 2

Decision-making

Answer 2

The process of identifying and choosing alternatives based on the values and preferences of the decision-maker.

Question 3

Dual processing

Answer 3

The combination of verbal and visual information, allowing for better encoding of memory as both the phonological loop and visuo-spatial sketchpad are used.

Question 4

System one

Answer 4

Intuitive/automatic thinking

Question 5

System two

Answer 5

Rational/controlled thinking

Question 6

Heuristics

Answer 6

Mental short-cuts that involve focusing on one aspect of a complex problem and ignoring others, allowing for faster thinking and decision-making, but possibly leading to errors if we ignore important information or make incorrect assumptions.

Question 7

Cognitive bias

Answer 7

A systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects the decisions and judgments that they make.

Question 8

Anchoring bias

Answer 8

The tendency to rely too heavily on the first piece of information
offered (the ‘anchor’) when making decisions.

Question 9

Illusory correlation

Answer 9

Occurs when we incorrectly believe that two variables have a relationship with each other.

Question 10

Halo effect

Answer 10

the tendency to allow one specific trait or our overall impression of a person, company or product to positively influence our judgment of their other related traits.