Decision Making

Question 1

Estimates about whether certain facts about the world are true

Answer 1

Premises

Question 2

Proposition

Question 3

Deduction vs. Induction

Answer 3

Deduction: we start with a set of premises and use them to arrive at additional conclusions

The most basic form of deductive reasoning is the syllogism, a kind of reasoning in which a conclusion is derived from two or more propositional statements

Question 4

Categorical syllogism

Answer 4

If all A are B and all B are C then all A are C

Question 5

Statistical syllogism

Answer 5

A statistical syllogism (or proportional syllogism or direct inference) is a non-deductive syllogism. It argues, using inductive reasoning, from a generalization true for the most part to a particular case.

Question 6

The belief bias

Answer 6

Belief bias is the tendency in syllogistic reasoning to rely on prior beliefs rather than to fully obey logical principles

Question 7

Atmosphere effect

Answer 7

When people rate a conclusion as valid as long as the qualifying words (ex “some” “all”) in the premises match those is the conclusion

Question 8

Conditional syllogism

Answer 8

If P than Q. If it is Tuesday than I have class

Question 9

Modus tollens (denying the consequent)

Answer 9

A rule in relation to conditional syllogisms when we observe that the consequent is false and conclude that the antecedent must be false as well

Question 10

Wason’s card task

Question 11

Bayesian inference

Question 12

Expected utility theory

Answer 12

People should make the decision that maximizes value, we anticipate the value we will receive from different decisions or actions

Question 13

Loss aversion

Answer 13

A tendency of people to prefer avoiding losing something as compared with not gaining something of equal value

Question 14

Endowment effect

Answer 14

Tendency for people to place higher value on objects they already own over those they don’t own yet

Question 15

Standard marshmallow experiment

Question 16

Nudge theory

Answer 16

Examples of nudges include sending people a reminder to schedule a doctor’s appointment, ensuring that healthier food is more noticeable in a cafeteria, providing people with information regarding how much electricity they use, and reminding people what audience will see what they’re about to post on social media.

Question 17

Affect heuristic

Answer 17

Incorporates mood state into decisions. You may overestimate the risk of events that generate a strong emotional reaction

Question 18

Anchoring heuristic

Answer 18

Relies on information we are given previously to ground our other decisions. For example, sales signs provide you with an anchoring price before showing you the discounted price. This increases the likelihood of perceiving the discounted price as favourably lower amount

Question 19

Syllogism

Answer 19

The process of drawing conclusions from two or more propositions

Question 20

Modus ponens or affirming the antecedent

Answer 20

A rule in relation with a conditional syllogisms in which if the antecedent is observed to be true, then the consequent may be concluded to be true

Question 21

Base rate neglect

Answer 21

How many in the first place. Not considering the numbers and probabilities at first

Question 22

Conjunction fallacy

Answer 22

False belief that the conjunction of two conditions is more likely than either single condition: Linda the feminist bank teller