Decision Making (TM)

Question 1

Why do people have biases when decision making?

Answer 1

Biases are in place as SHORT CUTS in decision making because we don’t have the rational capacity to truly consider all alternatives

Question 2

Name 5 common Biases in Decision making

Answer 2

1. Overconfidence Bias
2. Anchoring Bias
3. Hindsight Bias
4. Randomness Error
5. Availability Bias

Question 3

Decision making can be improved by [BLANK] thinking and [BLANK] of common biases

Answer 3

Decision making can be improved by SYSTEMATIC thinking and AWARENESS of common biases

Question 4

After an event occurs, we feel we already knew what was going to happen (I-knew-it- all-along) is an example of which bias in decision making

Answer 4

Hindsight Bias

Question 5

Having more confidence than one should in their ability to make decisions given the objective parameters and information is known as what bias - usually when people make fast decisions (based on a quick assessment)

Answer 5

Overconfidence Bias

Question 6

A cognitive bias that describes the tendency for an individual to rely too heavily on an initial piece of information offered is known as the

Answer 6

Anchoring Bias

Question 7

A mental shortcut that relies on readily available info or immediate examples that come to a given person’s mind when evaluating a specific topic, concept, method or decision is the

Answer 7

Availability Bias

Question 8

Describe the 6 Steps in the RATIONAL DECISION MAKING PROCESS

Answer 8

1- DEFINE the Problem

2. IDENTIFY the Criteria
3. ALLOCATE Weight to Criteria
4. DEVELOP Alternatives
5. EVALUATE Alternatives
6. SELECT Best Alternative

Question 9

What is an assumption of the Rational Decision Making Model?

Answer 9

This Model assumes that Humans have the cognitive capacity to handle all incoming information and sort it properly (we do not)

Question 10

What are some hallmarks of Intuitive Decision Making?

Answer 10

Fast, Unconscious, Holistic Associations, Visual Association, Affectively / Emotionally charged, Informed by Past Experiences

Question 11

Strengths of Group Decision Making are? (3)

Answer 11

• Diversity of Views, Creativity and Higher Decision Quality

Question 12

GROUP THINK is a Weakness of Group Decision making. Group Think is when…

Answer 12

a group is too cohesive which in turn discourages creativity and individual responsibility

Question 13

GROUP SHIFT is a Weakness of Group Decision making. Group Shift is when

Answer 13

the initial positions of individual members of a group are exaggerated toward a more extreme position

Question 14

Randomness Error in Cognitive Biases in Decision Making is

Answer 14

making a random connection of arbitrary factors and basing your decision on that

Question 15

What are 2 types of Decision Making?

Answer 15

• RATIONAL and INTUITIVE

Question 16

Rational decision making is “BOUNDED” why

Answer 16

It is “Bounded” because it is LIMITED BY ITS CAPACITY

Question 17

How do you strengthen your Intuition?

Answer 17

• Practice self-reflection - participate in art / visually stimulating activities

Question 18

Is Rational Decision Making Faster or Slower than Intuitive Decision Making?

Answer 18

Slower - Intuitive Decisions are instantaneous