Finals Flashcards

1
Q

When we can see a clear
purpose or application for
something, our brains treat
it as valuable

A

Relevant

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2
Q

Our brains also keep recent
information more readily
accessible because it’s
useful for making
immediate decisions.

A

Recent

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3
Q

often feel
personally meaningful,
which increases our brain’s motivation to retain them.

A

Remarkable

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4
Q

is a rule
of thumb, or mental shortcut that
allows people to estimate the
probability of an outcome based on
how prevalent or familiar that
outcome appears in their lives.

A

Availability Bias

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5
Q

Ideas that are retrieved most
easily seem to be the most credible,
though it’s not necessarily in the case.

A

Retrievability

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6
Q

The attempt to categorize or
summon information matches a
certain reference.

A

Categorization

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7
Q

When a person possesses
too restrictive frame of reference
from which to formulate an
objective estimate.

A

Narrow range of experience

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8
Q

Individuals faced with a
positive outcome following a
decision would view that outcome
as a reflection of their ability and
skill. However, when faced with a
negative outcome, they would
ascribe it to bad luck or to someone
else’s intervention

A

Self attribution Bias

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9
Q

represents people’s propensity to
claim an irrational degree of credit for
their success.

A

Self Enhancing

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10
Q

Represents the corollary effect –
the irrational denial of responsibility
for failure.

A

Self protecting

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11
Q

Self Enhancing + self protecting =?

A

Self attribution Bias

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12
Q

is the
tendency of investors to believe that they
have a certain degree of control over the
outcomes of investment markets! Not all
investors believe that they have complete
control. However, a lot of them do believe
that they have some influence over the
market.

A

Illusion of control bias

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13
Q

Reasons why illusion of control bias
occurs:

A
  1. Desire to control
  2. Bias towards positivity
  3. Casualty vs. Correlation
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14
Q

is a mental process in which
people cling to their prior views or
forecasts at the expense of acknowledging
new information.

A

Conservatism bias

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15
Q

It refers to the fact that people like
to act in line with the things they have
already said, done or decide to do.

A

Consistency principle

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16
Q

Refers to a cosmological and planetary
theory, in which the Earth occupies the
central position of the world system.

A

Geocentrism

17
Q

Is the astronomical model in which the
Earth and planets revolve around the
Sun at the center of the universe

A

Heliocentrism

18
Q

tendency to favor the
known thing over the unknown, including
known risk over unknown risk.

A

Ambiguity Aversion Bias

19
Q

exists because we
dislike uncertain situations.

A

Ambiguity Aversion Bias

20
Q

When
presented with the unknown we’ll often
spend more time thinking about potential
drawbacks than potential benefits,
leading us to avoid ambiguous options.

A

Ambiguity Aversion Bias