decision making I

Question 1

decision making

Answer 1

refers to selecting choice among alternative courses of action

Question 2

what are decision making models

Answer 2

1) rational decision making model
2) intuitive decision making model
3) bounded rationality model

Question 3

Rational advantages

Answer 3

1) establishes clear criteria for how options should be evaluated
2) urges decision makers to generate an exhaustive set of alternatives

Question 4

Rational assumptions

Answer 4

1) people know all their available choices
2) people want to make the optimal decision
3) people have no cognitive biases

Question 5

intuitive decision

Answer 5

arriving at a decision without conscious reasoning. People scan environment for cues to plan a course of action. only ONE CHOICE is considered at a time.

Question 6

intuitive factors

Answer 6

changing conditions, circumstances, time pressures, constraints, and uncertainty

Question 7

bounded advantages

Answer 7

1)recognizes the limitations of decision-making process
2) individuals choose the first acceptable alternative

Question 8

Satisficing - apart of bounded rationality

Answer 8

accepting the first alternative that meets your minimum criteria

Question 9

satisficing factor

Answer 9

people tend to rely on HEURISTIC which allows fast decision making

Question 10

Heuristics

Answer 10

mental shortcuts or rules of thumbs

Question 11

Heuristics (+)

Answer 11

saves cognitive time and effort.

Question 12

Heuristics (-)

Answer 12

overreliance on heuristics can result in cognitive biases

Question 13

Biases

Answer 13

tendency for people to over (or under) estimate the true parameter

Question 14

cognitive biases

Answer 14

errors in perception that result in faulty decision making

Question 15

cognitive bias effects

Answer 15

1) people fall into predictable decision-making traps due to an overreliance on heuristics or gut instincts
2) biases lead people to have a disported or inaccurate understanding of environment

Question 16

availability bias

Answer 16

situations in which information that is more readily available is viewed more likely to occur.
events that are emotional, vivid, or more easily imagined are more available.
Conflate how likely something is to how frequently we are exposed to the information.

Question 17

representativeness bias

Answer 17

tendency to assess an event as more likely to occur based on our own stereotypes.
people tend to disregard or ignore potentially relevant information - sample sizes, base rates, etc.

Question 18

representativeness vs. availability

Answer 18

rep. is largely based on your own personal empierce.

Question 19

anchoring & adjustment bias

Answer 19

refers to the tendency to rely too heavily on an initial refence point when making decision and failing to adjust accordingly.
- initial reference is often arbitrary
people are not good at perceiving things in absolute terms (only relative)

Question 20

framing bias

Answer 20

tendency to be influenced by the way that problems are presented
95% fat free vs. 5% fat

Question 21

loss aversion

Answer 21

losses loom larger psychologically than gains.
ex. leaving class 5 mins early vs. staying 5 mins late

Question 22

loss aversion result

Answer 22

when problems are framed as losses people tend to engage in riskier behavior to avoid the psychological pain of dealing with loss

Question 23

confirmation bias

Answer 23

tendency to process and analyze information that supports preexisting ideas
people are ego-affirming.
- people tend not to seek out disconfirming info or evidence to the contrary

Question 24

awareness and training

Answer 24

gaining different experiences over time can help to be less susceptible to cognitive biases

Question 25

check yourself- 3rd person

Answer 25

am I relying solely on my own stereotypes? am I anchored on an arbitrary number?…

Question 26

expand info. & devils advocate

Answer 26

people fail to look for disconfirming evidence. seek out info you might not usually consider.