Key Concepts Flashcards

1
Q

An unambiguous specification of how to solve a class of problems

A

Algorithm

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2
Q

The dependence of the state of a system on its history.

A property of a system such that an output value is not a strict function of the corresponding input, but also incorporates some lag, delay, or history dependence, and in particular when the response for a decrease in the input variable is different from the response for an increase.

In control systems, ___ can be used to filter signals so that the output reacts less rapidly than it otherwise would, by taking recent history into account. For example, a thermostat controlling a heater may switch the heater on when the temperature drops below A, but not turn it off until the temperature rises above B. (For instance, if one wishes to maintain a temperature of 20 °C then one might set the thermostat to turn the heater on when the temperature drops to below 18 °C and off when the temperature exceeds 22 °C).

A

Hysteresis

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3
Q

___ is a time interval between the stimulation and response, or, from a more general point of view, a time delay between the cause and the effect of some physical change in the system being observed

A

Latency

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4
Q

In digital numeral systems, the ___ is the number of unique digits, including the digit zero, used to represent numbers in a positional numeral system. For example, for the decimal/denary system (the most common system in use today) the ___ is ten, because it uses the ten digits from 0 through 9.

In any standard positional numeral system, a number is conventionally written as (x)y with x as the string of digits and y as its base, although for base ten the subscript is usually assumed (and omitted, together with the pair of parentheses), as it is the most common way to express value. For example, (100)10 is equivalent to 100 (the decimal system is implied in the latter) and represents the number one hundred, while (100)2 (in the binary system with base 2) represents the number four.

A

Radix or base number

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5
Q

The modern form of the metric system, and is the most widely used system of measurement.
It comprises a coherent system of units of measurement built on seven base units, which are the ampere, kelvin, second, metre, kilogram, candela, mole, and a set of twenty prefixes to the unit names and unit symbols that may be used when specifying multiples and fractions of the units.

The system also specifies names for 22 derived units, such as lumen and watt, for other common physical quantities.

A

The International System of Units (SI, abbreviated from the French Système international (d’unités))

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6
Q

Conforming to a general rule or acceptable procedure.

Of or relating to a clergyman who is a ___

A

Canonical

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7
Q

___ is the concept of things being transitory, existing only briefly. Typically the term ___ is used to describe objects found in nature, although it can describe a wide range of things, including human artifacts intentionally made to last for only a temporary period, in order to increase their perceived aesthetic value. With respect to unique performances, for example, it has been noted that “___ is a quality caused by the ebb and flow of the crowd’s concentration on the performance and a reflection of the nostalgic character of specific performances”. Because different people may value the passage of time differently, “the concept of ___ is a relative one”

A

Ephemeral or ephemerality (from Greek - ephemeros, literally “lasting only one day”)

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8
Q

Any approach to problem solving or self-discovery that employs a practical method, not guaranteed to be optimal, perfect, logical, or rational, but instead sufficient for reaching an immediate goal. Where finding an optimal solution is impossible, impractical (beyond our practical capabilities), these methods can be used to speed up the process of finding a satisfactory solution. They can be mental shortcuts that ease the cognitive load of making a decision. Examples include using a rule of thumb, an educated guess, an intuitive judgment, a guesstimate, profiling, or common sense.

A

Heuristic technique (/hjʊəˈrɪstɪk/; Ancient Greek: εὑρίσκω, “find” or “discover”), often called simply a heuristic

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9
Q

Word combinations that have a different figurative meaning than the literal meanings of each word or phrase. They can be confusing for people learning a language as they don’t mean what they say.

For example: “He’s as cool as a cucumber” is an everyday ___.

A

Idioms

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10
Q

Problem-solving principle that essentially states that simpler solutions are more likely to be correct than complex ones. When presented with competing hypotheses to solve a problem, one should select the solution with the fewest assumptions

A

Occam’s razor

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11
Q

An adjective in English that describes something that was randomly determined.

The word first appeared in English to describe a mathematical object called a ___ process, but now in mathematics the terms ___ process and random process are considered interchangeable.

A

Stochastic

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12
Q

A ___ is a form of argument and an informal fallacy based on giving the impression of refuting an opponent’s argument, while actually refuting an argument that was not presented by that opponent. One who engages in this fallacy is said to be “attacking a ___”.

A

Straw man

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13
Q

___ is in a way that relates only slightly to a matter; peripherally.

A

Tangential

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14
Q

In mathematics, computer science and physics, a ___ system is a system in which no randomness is involved in the development of future states of the system. A ___ model will thus always produce the same output from a given starting condition or initial state.

A

Deterministic

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15
Q

___ is an informal fallacy that states: “Since event Y followed event X, event Y must have been caused by event X.”

___ is a particularly tempting error because correlation appears to suggest causality. The fallacy lies in a conclusion based solely on the order of events, rather than taking into account other factors potentially responsible for the result that might rule out the connection.

A simple example is “the rooster crows immediately before sunrise; therefore the rooster causes the sun to rise.”

A

Post hoc ergo propter hoc (Latin: “after this, therefore because of this”), often shortened to post hoc fallacy.

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16
Q

___ is the efficacy that connects one process or state, the ___, with another process or state, the effect, where the ___ is partly responsible for the effect, and the effect is partly dependent on the ___.

A

Causality

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17
Q

The ___, is a cellular automaton devised by the British mathematician John Horton Conway in 1970.

The game is a zero-player game, meaning that its evolution is determined by its initial state, requiring no further input. One interacts with the ___ by creating an initial configuration and observing how it evolves. It is Turing complete and can simulate a universal constructor or any other Turing machine.

The universe of the ___ is an infinite, two-dimensional orthogonal grid of square cells, each of which is in one of two possible states, alive or dead, (or populated and unpopulated, respectively). Every cell interacts with its eight neighbours, which are the cells that are horizontally, vertically, or diagonally adjacent. At each step in time, the following transitions occur:

  • Any live cell with fewer than two live neighbours dies, as if by underpopulation.
  • Any live cell with two or three live neighbours lives on to the next generation.
  • Any live cell with more than three live neighbours dies, as if by overpopulation.
  • Any dead cell with exactly three live neighbours becomes a live cell, as if by reproduction.
A

Game of Life, also known simply as Life

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18
Q

___ is when we concentrate on information that’s already tightly embedded in our minds. We usually use the ___ for concepts we already find familiar or comfortable.

A

Focused mode thinking

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19
Q

___ is what happens when you relax your attention and let your mind wander a bit. We use it to get a “big picture” understanding of something.

A

Diffuse mode thinking

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20
Q

___ are pieces of information that are connected by their common meaning

A

Memory chunks (chunking)

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21
Q

___ is when you mentally retrieve the main ideas of your learning material. It helps build new chunks of information.

A

Recall

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22
Q

This is a phenomenon that occurs when students incorrectly gauge their knowledge with certain information. These ___ are usually no fault of the students but rather the result of ineffective study methods.

A

Illusions of competence

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23
Q

___ is the development of a mechanized state of mind. Often called a problem solving set, ___ refers to a person’s predisposition to solve a given problem in a specific manner even though better or more appropriate methods of solving the problem exist.

The ___ effect is the negative effect of previous experience when solving new problems.

A

Einstellung

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24
Q

To prevent ___, you want to avoid concentrating on product. Instead, your attention should be on building processes. The product is what triggers the pain that causes you to ___.

A

Procrastination

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25
Q

The first continuum reflects on how people digest new information.

The ___ types learn best by talking and interacting with others. By interacting with the physical world, ___ can process and make sense of new information.

The ___ types prefer quiet reflection and privacy. Information processing occurs for ___ as they explore ideas and concepts internally.

A

Extraverted (E) / Introverted (I) - Myers-Briggs

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26
Q

The second continuum reflects what people focus their attentions on.

___ types are good at concrete and tangible things. ___ types might enjoy a learning environment in which the material is presented in a detailed and sequential manner. ___ types often attend to what is occurring in the present, and can move to the abstract after they have established a concrete experience.

___ types are good at abstract things and ideas. ___ types might prefer a learning atmosphere in which an emphasis is placed on meaning and associations. Insight is valued higher than careful observation, and pattern recognition occurs naturally for ___ types.

A

Sensing (S) / Intuition (N) - Myers-Briggs

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27
Q

The third continuum reflects a person’s decision preferences.

___ types desire objective truth and logical principles and are natural at deductive reasoning.

___ types place an emphasis on issues and causes that can be personalized while they consider other people’s motives.

A

Thinking (T) / Feeling (F) - Myers-Briggs

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28
Q

The fourth continuum reflects how a person regards complexity.

___ types tend to have a structured way or theory to approach the world. ___ types will always try to make accommodation between new information and their structured world, which might only be changed with discretion.

___ types tend to be unstructured and keep options open. ___ types will be more willing to change without having a prior structured world.

A

Judging (J) / Perceiving (P) - Myers-Briggs

29
Q

___ is a mechanism that resists further changes in one direction. It counters change in one direction with a change in the opposite direction. It seeks to stabilize a system.

Often in systems, you will find this ___ together with the reinforcing feedback loop, which does the opposite and creates exponential changes.

___ have three important components:

  • the goal or desired level
  • the actual level
  • the gap between those two

When the ___ sees a gap, it will trigger corrective actions to bring the actual level of something closer to the desired level.

The key to understanding a specific ___ is finding out its goal. That may not always explicit or immediately visible.

A

Balancing feedback loop

30
Q

___ are found whenever behaviours or events inside the loop reinforce one another. These loops amplify the effect of the process.

That’s a mouthful, but you can find real-world examples all around you. The compound interest is a very common one. The more money you have in the bank, the more you earn on interest. That money is added to your balance and so you earn on interest even more.

Effects of ___ are exponential, not linear. They lead to exponential increases or decreases, whereas balancing feedback loops lead to plateaus – their goal is stability. Often, these two loops exist together within a system.

The basic characteristic of all feedback loops is that the output of one cycle is the input for the next cycle. In the case of ___, this input amplifies the next output.

Inside the loop, there are at least two variables. These variables reinforce each other. However, there can be also external variables that influence the loop.

A

Reinforcing feedback loops

31
Q

An approach to giving feedback.

___ is what happens when you challenge someone directly, but don’t care about them personally. It’s being clear, but not kind; praise that doesn’t feel sincere or criticism that isn’t delivered kindly. ___ is also called “brutal honesty” or “front stabbing.”

Unfortunately, some confuse Radical Candor with ___ — for example, in HBO’s Silicon Valley. And Dilbert, who mistakes Radical Candor for ___.

“Radical Candor is not a license to be gratuitously harsh or to ‘front-stab.’ It’s not Radical Candor just because you begin with the words, ‘Let me be radically candid with you.’ If you follow that phrase with words like, ‘You are a liar and I don’t trust you,’ you’ve just acted like a garden-variety jerk. It’s not Radical Candor if you don’t show that you Care Personally.”

A

Obnoxious Aggression

32
Q

An approach to giving feedback.

___ is what happens when you neither Care Personally nor Challenge Directly. It’s praise that is non-specific and insincere, or criticism that is neither clear nor kind. It’s the kind of backstabbing, political, passive aggressive behavior that might be fun to tell stories about but makes for a toxic workplace, ruining relationships and ruining work.

People give praise and criticism that is ___ when they are too focused on being liked or they think they can gain some sort of political advantage by being fake, or when they are too tired to care or argue any more.

A

Manipulative Insincerity

33
Q

An approach to giving feedback.

___ is “nice” but ultimately unhelpful or even damaging. It’s what happens when you care about someone personally, but fail to challenge them directly. It’s praise that isn’t specific enough to help the person understand what was good, or criticism that is sugar-coated and unclear.

___ is seeing somebody with their fly down, but, not wanting to embarrass them, saying nothing, with the result that 15 more people see them with their fly down — more embarrassing for them. So, not so “nice” after all.

A

Ruinous Empathy

34
Q

An approach to giving feedback.

___ is what happens when you show someone that you Care Personally while you Challenge Directly, without being aggressive or insincere. ___ really just means saying what you think while also giving a damn about the person you’re saying it to.

A

Radical Candor

35
Q

In economics, a ___ is a graph depicting the relationship between the price of a certain commodity (the y-axis) and the quantity of that commodity that is demanded at that price (the x-axis). ___ may be used to model the price-quantity relationship for an individual consumer (an individual ___), or more commonly for all consumers in a particular market (a market ___). It is generally assumed that ___ are downward-sloping. This is because of the law of demand: for most goods, the quantity demanded will decrease in response to an increase in price, and will increase in response to a decrease in price.

A

Demand curve

36
Q

___ made its debut in the book The Clock of Long Now by Stewart Brand. It appeared as a deceptively simple diagram with the caption: “The order of civilization. The fast layers innovate; the slow layers stabilize. The whole combines learning with continuity.”

The six ___ levels in descending order from the highest and fastest to the lowest and slowest are Fashion, Commerce, Infrastructure, Governance, Culture, Nature.

A

Pace Layers

37
Q

___ is influence by which one event, process, state or object (a cause) contributes to the production of another event, process, state or object (an effect) where the cause is partly responsible for the effect, and the effect is partly dependent on the cause. In general, a process has many causes, which are also said to be causal factors for it, and all lie in its past. An effect can in turn be a cause of, or causal factor for, many other effects, which all lie in its future.

A

Causality (also referred to as causation, or cause and effect)

38
Q

The ___ is the thesis that communities with adjoining territories and close relationships are especially likely to engage in feuds and mutual ridicule because of hypersensitivity to details of differentiation. The term was coined by Sigmund Freud in 1917, based on the earlier work of British anthropologist Ernest Crawley. In language differing only slightly from current psychoanalytic terminology, Crawley declared that each individual is separated from others by a taboo of personal isolation, a ___.

A

Narcissism of small differences or narcissism of minor differences

39
Q

Often used in the sciences and statistics relating to the uniformity of a substance or organism. A material or image that is ___ is distinctly nonuniform in composition or character (i.e. color, shape, size, weight, height, distribution, texture, language, income, disease, temperature, radioactivity, architectural design, etc.).

A

Heterogeneous

40
Q

Often used in the sciences and statistics relating to the uniformity of a substance or organism. A material or image that is ___ is uniform in composition or character (i.e. color, shape, size, weight, height, distribution, texture, language, income, disease, temperature, radioactivity, architectural design, etc.).

A

Homogeneous

41
Q

Toyota Production System

The best practice is to go and see the location or process where the problem exists in order to solve the problem quickly and efficiently. To grasp problems, confirm the facts and analyse root causes.

A

Genchi Genbutsu (English: Go and see for yourself)

42
Q

Toyota Production System

The TPS is dictated by the needs of the customer, as we don’t produce anything until there is a need for it. ___ production means only making what is needed, when it is needed and in the amount needed. TPS operates a ‘pull’ system. When each vehicle is made to order, a signal is sent for parts to be replaced, thus maintaining the parts and materials inventory at a balanced level. Production and transport take place simultaneously throughout the production sequence.

A

Just-In-Time (JIT)

43
Q

Toyota Production System

A process that helps to ensure maximum quality, the elimination of waste, and improvements in efficiency. ___ improvements in standardised work help maximise productivity at every worksite. Standardised work involves following procedures consistently and, therefore, employees can identify problems promptly. ___ activities include measures for improving equipment, as well as improving work procedures.

Literally ‘good change’, the word now refers to the culture and philosophy of continuously improving any department or functional process, thereby increasing productivity, quality and efficiency. Within the TPS, ___ humanises the workplace, empowering individual members to identify areas for improvement and suggest practical solutions. The focused activity surrounding this solution is often referred to as a ___ blitz, while it is the responsibility of each member to adopt the improved standardised procedure and eliminate waste from within the local environment.

A

Kaizen (English: Continuous improvement)

44
Q

Toyota Production System

A tool used in the TPS to operate the ‘pull’ type production system. It is a system that provides for the conveying of information between processes and automatically orders parts as they are used. Every item or box of items that flows through the production process carries its own ___. ___ are removed from items as they are used or transported and go back to the preceding processes as orders for additional items.

Though literally translated as ‘signboard’, the Toyota-developed method has become known as a clear, sign-based scheduling system triggering the logistical chain of production and maintaining it at an optimal level. ___ is the quick-response system through which Just-In-Time production is achieved, harmonising inventory levels with actual consumption. Toyota has six rules for the effective application of ___: 1) Never pass on defective products; 2) Take only what is needed; 3) Produce the exact quantity required; 4) Level the production; 5) Fine-tune production; and 6) Stabilise and rationalise the process.

A

Kanban (English: Signboard)

45
Q

Toyota Production System

In management terms, refers to a wide range of non-value-adding activities. For example, anything an operator has to do within a process which does not add value but does add cost. Eliminating waste is one of the main principles of the Just-In-Time system. Waste incurs unnecessary finance costs and storage costs.

The first of three types of waste mentioned within the TPS, the identification and reduction of which will reduce the unnecessary consumption of resources and increase profitability.

A

Muda (English: Waste)

46
Q

Toyota Production System

Eliminating unevenness or irregularities in the production process is one of the main principles of the Just-In-Time system, the main pillar of the TPS.

The second of three types of waste mentioned within the TPS, notably identified and leveled through the application of Heijunka principles and Kanban devices.

A

Mura (English: Unevenness or irregularity)

47
Q

Toyota Production System

Eliminating overburden of equipment and people is one of the main principles of the Just-In-Time system, the main pillar of the TPS. To avoid overburden, production is evenly distributed in assembly processes.

The third of three types of waste highlighted within the TPS, requiring the balancing of manufacturing pace to allow members sufficient time to achieve the correct standard of work. A reduced time frame will be too burdensome to achieve the objective, while the allowing of too much time is a waste of resource.

A

Muri (English: Overburden)

48
Q

Toyota Production System

The first step in the decision making process. It is the sharing of information about decisions that will be made, in order to involve all employees in the process. During ___, the company seeks the opinion of employees about the decision.

Literally translated as ‘going around the roots’, particularly in the sense of digging around the roots of a tree to prepare it for transplant. Within the TPS — and Japanese culture itself — the word has come to mean an informal process of laying the foundation and building a consensus of opinion before making formal changes to any particular process or project. Successful application of ___ allows changes to be carried out with the consent of all parties.

A

Nemawashi (English: Laying the groundwork or foundation; building consensus)

49
Q

Toyota Production System

Failsafe devices in the production process (sensors, templates etc) that automatically stop the line when an abnormality occurs.

A ___ is any part of a manufacturing process that helps a Toyota member avoid (yokeru) mistakes (poka). Its purpose is to eliminate defects by preventing, correcting, or highlighting errors as they occur

A

Poka-Yoke (English: Mistake-proofing)

50
Q

___ means based on, concerned with, or verifiable by observation or experience rather than theory or pure logic.

A

Empirical

51
Q

Harold Kelley’s ___ model is an attribution theory in which people make causal inferences to explain why other people and ourselves behave in a certain way. It is concerned with both social perception and self-perception.

The ___ principle states that, “an effect is attributed to the one of its possible causes with which, over time, it ___”. That is, a certain behaviour is attributed to potential causes that appear at the same time. This principle is useful when the individual has the opportunity to observe the behaviour over several occasions. Causes of an outcome can be attributed to the person (internal), the stimulus (external), the circumstance, or some combination of these factors. Attributions are made based on three criteria: Consensus, Distinctiveness, and Consistency.

A

Covariation

52
Q

___ have different strategies for different problems. They are comfortable with nuance, they can live with contradictions. ___, on the other hand, focus on the big picture. They reduce every problem to one organizing principle.

A

Foxes and Hedgehogs

53
Q

___ is the desire to get fame and recognition without doing the good deeds that are required for us to deserve it

A

Ego

54
Q

It’s not what happens to you, but how you ___ to it that matters.

A

React - Epictetus, a Greek Stoic philosopher

55
Q

Toyota Production System

___ is a technique to facilitate Just-In-Time (JIT) production, it means production leveling (finding and keeping average production volumes) and is used to smooth out production in all departments as well as that of the supplier over a period of time.

A

Heijunka (English: Production smoothing or leveling)

56
Q

“All models are ___, but some models are useful”

A

“wrong” - George E. P. Box, meaning that all models are simplifications of the universe

57
Q

___ is an informal fallacy of questionable cause where cause and effect are reversed. The cause is said to be the effect and vice versa.

A

B causes A or reverse causation or reverse causality or wrong direction

58
Q

In statistics, a ___ is a mathematical relationship in which two or more events or variables are associated but not causally related, due to either coincidence or the presence of a certain third, unseen factor (referred to as a “common response variable”, “confounding factor”, or “lurking variable”).

A

Spurious relationship or spurious correlation

59
Q

The ___ is a logical fallacy where a spurious relationship is confused for causation. It asserts that X causes Y when, in reality, X and Y are both caused by Z. It is a variation on the post hoc ergo propter hoc fallacy and a member of the questionable cause group of fallacies.

A

Third factor C (the common-causal variable) causes both A and B or third-cause fallacy (also known as ignoring a common cause or questionable cause)

60
Q

__ is when causality is not necessarily one-way; in a predator-prey relationship, predator numbers affect prey numbers, but prey numbers, i.e. food supply, also affect predator numbers. Another well-known example is that cyclists have a lower Body Mass Index than people who do not cycle. This is often explained by assuming that cycling increases physical activity levels and therefore decreases BMI. Because results from prospective studies on people who increase their bicycle use show a smaller effect on BMI than cross-sectional studies, there may be some reverse causality as well (i.e. people with a lower BMI are more likely to cycle).

A

Bidirectional causation: A causes B, and B causes A

61
Q

___ is a Latin phrase meaning “other things equal”; English translations of the phrase include “all other things being equal” or “other things held constant” or “all else unchanged”. A prediction or a statement about a causal, empirical, or logical relation between two states of affairs is ___ if it is acknowledged that the prediction, although usually accurate in expected conditions, can fail or the relation can be abolished by intervening factors.

A

Ceteris paribus or caeteris paribus

62
Q

“An ___ is a sacrifice of current consumption for expected future gain.”

A

“investment” - defined by William Sharpe, a Nobel Prize winner in economics

63
Q

___ is an observation about the frequency distribution of leading digits in many real-life sets of numerical data. The law states that in many naturally occurring collections of numbers, the leading digit is likely to be small. In sets that obey the law, the number 1 appears as the leading significant digit about 30 % of the time, while 9 appears as the leading significant digit less than 5 % of the time. If the digits were distributed uniformly, they would each occur about 11.1 % of the time. ___ also makes predictions about the distribution of second digits, third digits, digit combinations, and so on.

A

Benford’s law, also called the Newcomb–Benford law, the law of anomalous numbers, or the first-digit law

64
Q

The ___ is when a person believes he or she can see everything. It is a simple fact no one alone can see a complete picture of reality.

A

Blind-spot barrier from Ray Dalio’s Principles for Success

65
Q

The ___ is a hypothetical cognitive bias stating that people with low ability at a task overestimate their ability.

As described by social psychologists David ___ and Justin ___, the bias results from an internal illusion in people of low ability and from an external misperception in people of high ability; that is, “the miscalibration of the incompetent stems from an error about the self, whereas the miscalibration of the highly competent stems from an error about others”. It is related to the cognitive bias of illusory superiority and comes from people’s inability to recognize their lack of ability. Without the self-awareness of metacognition, people cannot objectively evaluate their level of competence.

A

Dunning–Kruger effect

66
Q

Narcissistic rage is a psychological construct that describes a reaction to ___, which is conceptualized as a perceived threat to a narcissist’s self-esteem or self-worth. ___ is a phrase used by Sigmund Freud in the 1920s. The term narcissistic rage was coined by Heinz Kohut in 1972.

The model underlying the construct suggests that ___ occurs when a narcissist feels that their hidden, “true self” has been revealed. This may be the case when the narcissist experiences a “fall from grace”, such as when their hidden behaviors or motivations are revealed, or when their importance is brought into question. ___ is a cause of distress and can lead to dysregulation of behaviors as in narcissistic rage.

A

Narcissistic injury, narcissistic scar, narcissistic wound or narcissistic blow

67
Q

The ___, is a grouping principle for separating a set of items into subsets that are ___. It was developed in the late 1960s by Barbara Minto at McKinsey & Company and underlies her Minto Pyramid Principle, and while she takes credit for ___, according to her interview with McKinsey, she says the idea for ___ goes back as to Aristotle.

The ___ principle is useful in the business mapping process wherein the optimum arrangement of information is exhaustive and does not double count at any level of the hierarchy. Examples of ___ arrangements include categorizing people by year of birth (assuming all years are known). A non-___ example would be categorization by nationality, because nationalities are neither ___ (some people have dual nationality) nor ___ (some people have none).

A

MECE principle, (mutually exclusive and collectively exhaustive) pronounced by many as “ME-see”, and pronounced by the author as “Meese” like Greece or niece

68
Q

In economics and business decision-making, a ___ is a cost that has already been incurred and cannot be recovered. ___ are contrasted with prospective costs, which are future costs that may be avoided if action is taken. In other words, a ___ is a sum paid in the past that is no longer relevant to decisions about the future. Even though economists argue that ___ are no longer relevant to future rational decision-making, in everyday life, people often take previous expenditures in situations, such as repairing a car or house, into their future decisions regarding those properties.

A

Sunk cost (also known as retrospective cost)

69
Q

The ___ states that for many outcomes, roughly 80% of consequences come from 20% of causes (the “vital few”). Other names for this principle are the 80/20 rule, the law of the vital few, or the principle of factor sparsity.

A

Pareto principle