Heuristics and Biases

Question 1

chance is often viewed as a

Answer 1

self correcting process

Question 2

which has been proven more effective punishment or reward

Answer 2

punishment

Question 3

define salience

Answer 3

being particularly noticeable

Question 4

define arbitrary

Answer 4

based on a random choice or personal whim rather than reason

Question 5

why are project pre mortems beneficial

Answer 5

many projects fail due to ignoring reservations during the planning phase

Question 6

what are prospective hindsights

Answer 6

learning to solve the problems before they happen. Generate solutions and possible problems

Question 7

why is it good to do prelaunch risk analysis in teams

Answer 7

many ideas

feel valued for their intelligence when a problem is suggested that hasn’t been suggested yet

Question 8

how should teams be encouraged for pre mortems

Answer 8

make them interactive, competitive, most pessimistic outcome wins!

Question 9

Why are pre mortems uncomfortable

Answer 9

normalising not thinking of success all the time

Question 10

what are the bad outcomes of post mortems that pre mortems prevents

Answer 10

accountability and blaming

Question 11

what is passive perception

Answer 11

what everyone sees and has no choice but t

Question 12

what is active perception

Answer 12

what we choose to see and not see. different for everyone

depends on culture, background, age , gender etc

Question 13

what stimuli do we choose to look at in active perception

Answer 13

subconsciously we choose info relevant to us

Question 14

what theory explains active perception and subconsciously paying attention to what is relevant

Answer 14

cocktail party phenomenon

Question 15

why is novelty used in marketing

Answer 15

slightly confuses consumer as they try to categorise

Question 16

example of contextual framing

Answer 16

39.99 v 40

Question 17

which is a shortcut, being rational or our heuristics

Answer 17

Heuristics

Question 18

in an unstable environment is there more or less rash decision making

Answer 18

more

Question 19

when a decision maker overestimates how much a sample represents the situation this is called

Answer 19

representativeness

Question 20

how should managers avoid insensitivity to prior info

Answer 20

by providing lots of info to see the bigger picture, being aware that the info you are receiving may be distorted/biased

Question 21

explain the idea behind insensitivity to sample size

Answer 21

People have too much confidence in their predictions from small sample sizes that do not represent the entire population

Question 22

how does the insensitivity to small numbers heuristic relate to business schools

Answer 22

much of business is taught through case studies but this data does not represent the bigger picture as it get biased towards success and failure narratives in the minds of students

Question 23

what is gamblers fallacy as a heuristic

Answer 23

misconception of chance

Question 24

what is illusion of validity also known as

Answer 24

overconfidence

Question 25

explain the availability heuristic

Answer 25

what is at the top of our mind is what we bring to the table

Question 26

what is confirmation bias

Answer 26

when you have unconsciously made a decision in your head and when going through new info, you sift out the parts that confirm your decision

Question 27

if something is easy to recall do people think it is more or less probable

Answer 27

more

Question 28

when everyone in a group agrees with ideas and don’t critique

Answer 28

group think

Question 29

what is anchoring and adjustment

Answer 29

having a starting point and having the ability to change the lens you look through

Question 30

when do we adjust and move from our anchor

Answer 30

as raw data comes in

Question 31

Stuart Mc Arthur’s upside down map of the world explains how …

Answer 31

frames are the way in which people understand realities

Question 32

what is conjunction fallacy

Answer 32

when it is assumed that specific conditions are more probable than a single general one.