Chapter 5

Question 1

Perceptual biases PRACH

Answer 1

Primacy, Recency, Availability, Contrast, Halo

Question 2

Primacy Effect

Answer 2

Once a person has formed an initial impression , they maintain it even when presented with concrete evidence that it is false (first impressions)

Question 3

Belief updating

Answer 3

Initial information affects the conclusion one draws, and this conclusion then impacts later judgements

Question 4

What can be done to address the primacy effect?

Answer 4

Increasing accountability

Question 5

Recency effect

Answer 5

Remembering the most recently presented items or experiences (remembering the last items on the list)

Question 6

How can you guard against the recency effect?

Answer 6

(1) Rehearsing information
(2) Coding, linking the information to something easily retrievable
(3) Imaging, verbal information is linked to visual images

Question 7

Avaolability Bias

Answer 7

Judgements being based upon what most readily comes into a person’s mind (remembering more of the famous people from a group of random people, plane crashes)

Question 8

How to guard against making the availability bias mistake?

Answer 8

(1) Make important things easier to remember with repetition
(2) Minimize the influence by describing the topic with vague words
(3) Increase the number of counter explanations
(4) Elaborative interrogation to make people generate their own explanations

Question 9

Contrast effects

Answer 9

Perception being affected by comparisons with other people

Question 10

Halo Error

Answer 10

When the rater’s overall positive impression or evaluation strongly influence ratings of specific attributes

Question 11

Four characteristics of intuition

Answer 11

(1) Nonconscious process
(2) Involving holistic associations
(3) that are produced rapidly
(4) resulting in affectively charged judgments

Question 12

Hindsight bias

Answer 12

The tendency for individuals with outcome knowledge to claim they would have estimated a probability of occurrence for the reported outcome that is higher than they would have estimated in foresight (without the outcome information)

Question 13

Overconfidence bias / Hubris

Answer 13

Inflated confidence in how accurate a person’s knowledge or estimstes are

Question 14

How to avoid the oveconfidence bias?

Answer 14

(1) Assign a trusted follower to critique the decisions
(2) Place limits on the power by having someone else approve decisions
(3) Remind oneself of past decision-making errors

Question 15

Escalation of Commitment

Answer 15

Individuals continue a failing course of action after receiving feedback that shows it isn’t working (sunk costs fallacy)

Question 16

6 Reasons why people show Escalation of Commitment

Answer 16

(1) Money already spent (2) Pride issues (3) Being unsure (4) Need to finish what is started (5) Self-interest (6) Losing face

Question 17

How to avoid Escalation?

Answer 17

(1) Separate the initial decision-maker from the decision evaluator
(2) Create accountability for the decision processes only, not outcomes
(3) Shift attention away from the self
(4) Avoid positive feedback as it may increase the risk of becoming overconfident about one’s decisions

Question 18

Amabile’s three-component model of creativity

Answer 18

Expertise (knowledge) , Creative thinking skills (how adaptable and imaginative an individual is), Motivation (intrinsic motivation)