Intuitive Thinking and Heuristics

Question 1

the ability to understand something instinctively, without the need for conscious reasoning (en.oxforddictionaries.com).

Answer 1

Intuition

Question 2

involving or serving as an aid to learning, discovery, or problem-solving by experimental and especially trial-and-error methods (www.merriam-webster.com).

Answer 2

Heuristic

Question 3

This heuristic is at work when we settle for a decision or a choice that is good enough to satisfy ourselves.

Answer 3

Satisficing Heuristic

Question 4

This is at work when we make decisions or judgments based on what we think is a “sure thing.” Because of this belief, people naturally settle for a sure advantage or even disadvantage than to take risks to get a better advantage or a lesser loss.

Answer 4

Risk-Aversion Heuristic

Question 5

This is at work when we give more weight to disadvantages than advantages in making decisions or judgments. Naturally, people would waive their chance of gaining in order not to lose what they already have (Facione, 2013 cited in Dela Cruz & Dela Cruz, 2017). If this kind of heuristic prevailed, it would result to a strong tendency to remain at the “status quo” because the fear of losing is given more importance than the possible gains.

Answer 5

Loss-Aversion Heuristic

Question 6

This is at work when our belief, that a related story or experience will happen again, affects our decision or judgment.

Answer 6

Availability Heuristic

Question 7

It is sometimes called “gut reaction” or “gut feeling.” This affective response is at work when it brings an immediate positive or negative emotional reaction to our decision or judgment.

Answer 7

Affect Heuristic

Question 8

This heuristic is at work when we make decisions or judgment on the basis of what a word or an idea reminds us of. This association may be beneficial to an individual, as for example, if associating “cancer” with “death” leads you to change your lifestyle, add greens to your diet, and go in for regular checkups. It may also influence a person to make an unwise decision, as for example if associating cancer with “death” were to lead a person not to seek diagnosis and treatment of a cancer symptom because of fear.

Answer 8

Association Heuristic

Question 9

This heuristic is at work when we make decisions or judgment on the basis of how we imagine various scenarios will happen. These simulations may help us to prepare and do a better job when the actual moment arrives but they can also lead us to false expectations.

Answer 9

Simulation Heuristic

Question 10

This heuristic is at work when we make decisions or judgment on the basis of a belief that what happened to someone else with whom we have certain similarities will happen to us as well. For example, if Student A believes that he will fail Mathematics due to low assessment scores and poor attendance because Student B failed the subject due to the same reasons, his belief has a high degree of probability. But if the consideration is irrelevant, like similarity in height, weight, or zodiac signs, the belief has a low degree of probability

Answer 10

Similarity Heuristic

Question 11

This heuristic is at work when a person uses a specific target number or value as a starting point, known as an anchor, and then adjusts that information until an acceptable value is reached over time. For example, the buyer and the seller is negotiating for a price of a good at a bazaar, let’s say a dress. The seller offered ₱250.00 for the dress, that price will become the anchor of their negotiation.

Answer 11

Anchoring-and-Adjustment Heuristic