Decision making and reasoning

Question 1

Erroneous reasoning - in judgement and reasoning:

Answer 1

fallacy

Question 2

The goal of human action is to seek pleasure and avoid pain:

Answer 2

subjective expected utility theory

Question 3

According to subjective expected utility theory, the goal of human action is to?

Answer 3

Seek to maximise pleasure (positive utility) and minimise pain (negative utility)

Question 4

A calculation based on the individual’s judged weightings of utility (value), rather than on objective criteria:

Answer 4

subjective utility

Question 5

A calculation based on the individual’s estimates of likelihood, rather than on objective statistical computations:

Answer 5

subjective probability

Question 6

Mental shortcuts that lighten the cognitive load of making decisions:

Answer 6

heuristics

Question 7

Rational, but within limits:

Answer 7

bounded rationality

Question 8

Consider options one by one, and then select an option as soon as one that is satisfactory or just good enough to meet our minimum level of acceptability:

Answer 8

satisficing

Question 9

We eliminate alternatives by focusing on aspects of each alternative, one at a time:

Answer 9

elimination by aspect

Question 10

the prevalence of an event or characteristic within its population of events or characteristics:

Answer 10

base rate

Question 11

Make judgements on the basis of how easily we can call to mind what we perceive as relevant instances of a phenomenon:

Answer 11

availability heuristic

Question 12

People adjust their evaluations of things by means of certain reference points called end-anchors:

Answer 12

anchoring

Question 13

A heuristic related to availability:

Answer 13

anchoring-and-adjustment heuristic

Question 14

the way that the options are presented influences the selection of an option:

Answer 14

framing

Question 15

Used to select from among choices or to evaluate opportunities:

Answer 15

judgement and decision making

Question 16

What are the three assumed things in the classical decision theory?

Answer 16

1. fully informed 2. infinitely sensitive to variation 3. fully rational in regard to options.

Question 17

What are the three biases that frequently occur when people make decisions?

Answer 17

illusory correlation, overconfidence, and hindsight bias

Question 18

Judge the probability of an uncertain event according to how obviously it is similar to or representative of the population of which it is derived and to the degree it reflects the salient features by the process of which it is generated:

Answer 18

representativeness heuristic

Question 19

We are predisposed to see particular events or attributes and categories as going together, even when they do not:

Answer 19

illusory correlation

Question 20

An individual’s overvaluation of her or his own skills, knowledge or judgement:

Answer 20

overconfidence

Question 21

When we look at a situation retrospectively, we believe we easily can see all the signs and events leading up to a particular outcome:

Answer 21

hindsight bias

Question 22

a mistaken belief that the probability of a given random event such as winning or losing at a game of chance, is influenced by previous random events:

Answer 22

Gambler’s fallacy

Question 23

an individual gives a higher estimate for a subset of events than for the lager set of events containing the given subset:

Answer 23

conjunction fallacy

Question 24

The fallacy represents the decision to continue to invest in something simply because one has invested in it before and one hopes to recover one’s investment:

Answer 24

sunk-cost fallacy

Question 25

What parts of the brain play prominent roles in decision making?

Answer 25

anterior cingulate cortex

Question 26

The process of drawing conclusions from principles and from evidence:

Answer 26

reasoning

Question 27

Two types of reasoning?

Answer 27

deductive and inductive

Question 28

The process of reasoning from on elf more general statements regarding what is known to reach a logically certain conclusions:

Answer 28

deductive reasoning

Question 29

an assertion, which may be either true or false:

Answer 29

proposition

Question 30

propositions about which arguments are made:

Answer 30

premises

Question 31

the reasoner must draw a conclusion based on an if-then proposition:

Answer 31

conditional reasoning

Question 32

Two main types of conditional reasoning?

Answer 32

modus ponens and modus tollens

Question 33

affirming the antecedent:

Answer 33

modus ponens

Question 34

denying the consequent:

Answer 34

modus tollens

Question 35

General organising principles or rules related to particular kinds of goals, such as permission, obligations and causation:

Answer 35

Pragmatic reasoning schemas

Question 36

deductive arguments that involve drawing conclusions from two premises:

Answer 36

syllogisms

Question 37

We seek confirmation rather than disconfirmation of what we already believe:

Answer 37

confirmation bias

Question 38

The process of reasoning from specific facts or observations to reach a likely conclusion that may explain the facts:

Answer 38

inductive reasoning

Question 39

How people make judgements about whether something causes something else:

Answer 39

causal inferences