Lecture 1

Question 1

the availability heuristic

Answer 1

people asses the event by the degree to which instances or occurrences of that event are readily “available” in memory.

Question 2

The representativeness heuristic

Answer 2

when making a judgement about an individual, people tend to look for traits the individual may have that correspond with previously formed stereotypes.

Question 3

The confirmation heuristic

Answer 3

, consists of the tendency to search for, interpret or recall information that confirm, or in a way that confirms, individual’s preexisting beliefs or hypotheses, while paying less attention to alternative possibilities.

Question 4

The affect heuristic

Answer 4

The affect heuristic is a type of mental shortcut in which people make decisions that are heavily influenced by their current emotions. Essentially, your affect (a psychological term for emotional response) plays a critical role in the choices and decisions you make.

Question 5

‘Rational decision-making process

Answer 5

1. Define the problem.
2. Identify the criteria.
3. Weigh the criteria.
4. Generate alternatives.
5. Rate each alternative on each criterion.
6. Compute the optimal decision.

Question 6

System I and system II thinking

Answer 6

We make most decisions in life using System I. This system refers to our intuitive system, which is typically fast, automatic, effortless, implicit, and emotional. System II refers to reasoning that is slower, conscious, effortful, explicit, and logical.

Question 7

Overconfidence

Answer 7

Overconfidence has been studied in three basic ways: in terms of overprecision, overestimation, and overplacement. Mother of all biases.

Question 8

Overprecision

Answer 8

describes the tendency to be too sure our judgements and decisions are accurate, uninterested in testing our assumptions, and dismissive of evidence suggesting we might be wrong. it is easier for us to generate supportive rather than contradictory evidence.

Question 9

Overestimation

Answer 9

is the common tendency to think we’re better, smarter, faster, more
capable, more attractive, or more popular than we actually are. Sometimes people think they have more control over circumstances than they actually do, a phenomenon known as the illusion of control.

Question 10

The planning fallacy

Answer 10

describes the common tendency to overestimate the speed at which we will complete projects and tasks

Question 11

Overplacement

Answer 11

s the tendency to falsely think we rank higher than others on certain dimensions, particularly in competitive contexts