Judgement & Decision-Making

Question 1

decision-making

Answer 1

involves evaluating alternatives and making choices among them

Question 2

availability bias

Answer 2

items that are more easily available in memory are judged as having occurred more frequently

Question 3

framing effects

Answer 3

changing how an issue is presented can change people’s decisions

Question 4

loss aversion

Answer 4

people tend to want to avoid losses more than they want to achieve gains

Question 5

sunk-cost fallacy

Answer 5

being reluctant to abandon a course of action because of heavy investment in it, even if abandonment would be more beneficial

Question 6

anchoring effect

Answer 6

the bias to be affected by an initial anchor, even if the anchor is arbitrary, and to insufficiently adjust our judgements away from that anchor

Question 7

confirmation bias

Answer 7

tendency to search for confirming evidence, not disconfirming evidence

Question 8

What decision-making bias does this show:

Josh believes that mortality rates from shark bites are higher than mortality rates from asthma.

Answer 8

availability bias

Question 9

What decision-making bias does this show:

Josh is more likely to have a surgery with a 90% chance of survival than a 10% chance of mortality.

Answer 9

framing effects

Question 10

What decision-making bias does this show:

Josh would rather go to an expensive concert while sick than stay at home and recover from his sickness.

Answer 10

sunk-cost fallacy

Question 11

What decision-making bias does this show:

Josh rolls a 3 on a roulette wheel. After, when asked how many countries are in the UN, he says 12.

Answer 11

anchoring effect

Question 12

What decision-making bias does this show:

Josh is a democrat and believes in a news article that says the Republican party supports legalizing eating animals because he hates republicans.

Answer 12

confirmation bias