choice

Question 1

detecting if something is a chair or a table is _____ decision making while deciding to go out or stay in is _____ decision making

Answer 1

perceptual, value-based

Question 2

how do psychologists define risk?

Answer 2

taking action despite uncertain outcome

Question 3

what is risk premium?

Answer 3

difference between expected gains of a risky option and certain benefits of a safe option

Question 4

someone who needs a chance at winning a lot more than the safe option to take a risk fit which description?

Answer 4

risk averse

Question 5

someone who is risk neutral…

Answer 5

does not need a difference in options to take a risk

Question 6

someone who does not need a chance at winning a lot is…

Answer 6

risk seeking

Question 7

describe the framing effect

Answer 7

decision making based on the how a situation or item is framed

Question 8

what describes once ownership is established, people are averse to give it up

Answer 8

endowment effect

Question 9

true or false: being in a negative emotional state leads to positive estimates of outcome

Answer 9

false

Question 10

where does emotional activity show in the brain for risk

Answer 10

amygdala

Question 11

what does prospect theory state

Answer 11

people value gains and losses differently depending on the situation

Question 12

the utility function states that…

Answer 12

we value gains and losses subjectively. pizza example

Question 13

probability weighting function states that…

Answer 13

we estimate unlikely events are occurring more often than they do and likely events as occurring less

Question 14

system 1 of decision making is…

Answer 14

fast, automatic, effortless. for heuristics and biases. in the limbic system

Question 15

system 2 for decision making is…

Answer 15

slow, deliberate, explicit. for rational choice. in the frontal cortex

Question 16

what is the prediction error

Answer 16

difference between what you predicted would happen and what actually happened