Ch.13

Question 1

Reasoning

Answer 1

Process of drawing conclusions

Question 2

Availability heuristic

Answer 2

Events more easily remembered are judged as being more probable or likely to happen than those less easily remembered

Question 3

Conjunction rule

Answer 3

Probability of two events cannot be higher than the probability of the single constituents

Question 4

Stereotypes

Answer 4

Oversimplified generalization about a group or class of people that often focuses on the negative

Question 5

Law of large numbers

Answer 5

Larger the number of individuals randomly drawn from a population, the more representative the resulting group will be of the entire population

Question 6

Confirmation Bias

Answer 6

Tendency to selectively look for information that conforms to our hypothesis and overlook information that argues against it (only listening what will confirm your bias)

Question 7

utility

Answer 7

outcomes that are desirable because they are in the person’s best interest

• (what benefit us the most // personal gain)

Question 8

expected emotions

Answer 8

emotions that people predict that they will feel concerning an outcome

• people inaccurately predict their emotions

Question 9

risk aversion strategy

Answer 9

avoids taking risk

used when problem is stated in terms of gain

Question 10

risk taking aversion

Answer 10

more likely to take a risk

used when problem is stated in losses

Question 11

base rate

Answer 11

relative proportion of different classes in the population

Question 12

decisions

Answer 12

how the choices are presented

• making choices based on alternatives

Question 13

opt-in procedure

Answer 13

taking an active step to be an organ donor

• signing to join

Question 14

opt-out procedure

Answer 14

everyone is an organ donor & you need to sign to NOT be an organ donor

• signing to get out

Question 15

status quo bias

Answer 15

tendency to do nothing when faced with making decision

Question 16

validity

Answer 16

syllogism whose conclusion follows logically from its premises

Question 17

belief bias

Answer 17

tendency to think that a syllogism is valid if its conclusions are believeable

Question 18

mental model

Answer 18

specific situation represented in a person’s mind that can be used to help determine the validity of syllogisms in deductive reasoning

Question 19

inductive reasoning

Answer 19

we draw conclusions from observations

Question 20

deductive reasoning

Answer 20

we determine whether a conclusion logically follows from the statements called premises

Question 21

conditional syllogism

Answer 21

“if p, then q”

Question 22

categorical syllogism

Answer 22

describes in relation between 2 categories using words; all, no, or some

Question 23

neuroeconomics

Answer 23

one finding suggested: decisions are influenced by emotions and these emotions are associated with activity in specific areas of the brain

Question 24

ultimatum game

Answer 24

sanfey & coworkers

• two players (proposer and responder)
• proposer: makes an offer to the responder on how they should split the money
• responder: either accepts or denies (often rejects low offers and is angry with he unfair offer)

but responder is less angry at the computer

Question 25

social exchange theory

Answer 25

an important aspect of human behavior is the ability of two people to cooperate in a way that is beneficial to both of them