Framing

Question 1

What is Framing?

Answer 1

When the way a question is posed affects your perception of the problem (frame of reference) and affects the subsequent decision

Question 2

What is the sunk cost fallacy?

Answer 2

People often accept the ‘double loss’ situation -> loss 1: sink resources into something

loss 2: proceed with the poor scenario which costs more going froward because they put money into it already

Question 3

What is the availability heuristic?

Answer 3

People are more likely to choose options they have the most familiarity with.

From a different perspective, it means that more salient/recallable memories influence someones judgement on their true prevalence.
Eg. ‘Scared of flying bc crashing’ EVEN THOUGH statistically more unlikely than car crashes -> images of plane crashes stay in ones mind

Question 4

Representativeness Heuristic

Answer 4

People will attribute something to a group based on how well it fits the expectations of the category.

Groups have identifying characteristics
EG: Birds : -have feathers
- can fly
- sing

Ostrich is bird but doesn’t fit the stereotypical category as much.

Question 5

Gamblers Fallacy what is it

Answer 5

The incorrect presumption that future events probabilities change with previous events “Ive flipped 10 heads in a row, next one has to be tails for sure!” is wrong logic bc coin flips are independent, 50 50

Question 6

What is Anchoring

Answer 6

When a number someone is exposed to sticks in their mind and becomes their frame of reference for interpretation/estimation of other numbers