Decision Making Flashcards
What are the goals of decision making?
To determine how people make decisions and how people should make decisions if they want an optimal outcome.
What does the normative model focus on when it comes to decision making?
To determine how people should make decisions if they want an optimal outcome.
What does the descriptive model focus on when it comes to decision making?
Determining how people make decisions.
What is risk?
An uncertainty about the outcome.
What is rationality?
Internal consistency of one’s belief’s and behaviors.
What are the non-risky decision models?
Compensatory models and non-compensatory models.
What is the non-compensatory model?
eliminates alternatives that do not meet a particular criterion.
What is the compensatory model?
Weighs the positive and negative attributes of the considered alternatives and allows for positive attributes to compensate for the negative ones
What are the types of compensatory models?
Additive model and additive-difference model.
What is the additive model?
Information about each attribute is combined to form an overall impression of an alternative.
What is the additive-difference model?
Compares two alternatives by adding the difference in their values for each attribute.
What are the types of non-compensatory models?
Elimination-by-aspect
Conjunctive model
What is the conjunctive model?
Each attribute is considered. If it has a minimum value then the next attribute is considered. The first alternative that meets the minimum requirement on each attribute is selected.
What is the elimination-by-aspect?
The most important attribute is considered first. Any attribute that doesn’t possess some minimum value on this attribute is
eliminated.
What is an interdimensional search?
When all the attributes of one alternative are considered before going to the other alternatives and its attributes.
What is an intra-dimensional search?
When different alternatives are considered on the basis of a chosen attribute before any other attributes are considered.
What is the algorithm method of doing risky decisions?
a formal procedure that defines the step-by-step process for making a calculation or solving a problem.
What is the heuristic method of doing risky decisions?
A procedure that are simplified means of determining something.
What is the availability heuristic?
The probability of an event is assessed by determining how
many examples of that event can be recalled. Easily recalled events receive higher probabilities.
What is representativeness?
The extent to which an event is considered to be likely is
determined by judging how typical it is
What is the conjunction fallacy?
The probability of two events cannot be larger than the probability of either of its constituent events.
