Lecture 2

Question 1

Cue

Answer 1

Information that people use as a signal to lead them to a decision

Question 2

Decision Tree

Answer 2

• a hierarchical model for decision making
• a strategy to help people make decisions
• Identifies relevant conditions that leads to consequences
• identifies consequences or outcomes based on listed conditions

Question 3

Computational Capacity

Answer 3

• the maximum amount of computational power that is available to process information

Question 3

Normative Models

Answer 3

• an established system
• used to reach the optimal decision

Question 4

Prescriptive Models

Answer 4

• how people should make decisions
• decision optimal given the constrains of time and cognitive resources

Question 5

Descriptive Models

Answer 5

An account of how people actually make decisions

Question 5

Three categories of models/frameworks in judgement and decision making

Answer 5

Normative models -

Descriptive Models - how people actually reach a decision (e.g. Heuristics and Biases)

Prescriptive models - recommendation about hoe people reach the optimal decision (e.g. Fast-and-Frugal Approach)

Question 6

Heuristic

Answer 6

A rule that people use to make decisions

These rules are:
Systematic
Quick to use
Easy to use

Question 7

Bias

Answer 7

Statistical Definition:
- a systematic distortion of a statistical result

• a statistical preference of one choice over another

Question 8

Representativeness Heuristic

Answer 8

“An event A is judged more probable than an event B whenever A appears more representative then B” (Kahneman & Tversky, 1972)

Question 9

Fast-and-Frugal Approach Heuristics I

Answer 9

• fast because we reach a decision quickly
• frugal because simple - does not use a lot of computational power
• heuristics because we want these rules to be systematically used to make decisions

Question 10

Fast-and-Frugal Approach Assumptions

Answer 10

• heuristics evolved as a result of interactions with the environment
• heuristics are adaptive
• heuristics strike a balance between minimizing computational power and speed, maximizing accuracy

Question 11

Recognition Heuristic

Answer 11

“If one of two objects is recognized and the other is not, then infer that the recognized object has the higher value with respect to the criterion” (Goldstein & Gigerenzer, 2002, p.76

Question 12

Dual-Process Theory

Answer 12

For higher level cognitive tasks:

There are two types of processes

There are two corresponding systems

The goal:
Identify the characteristics of each type of process

Question 12

Type 1 Systems/Process

Answer 12

• no working memory
• autonomous

Question 13

Type 2 Systems/Processes

Answer 13

• working memory
• not autonomous

Construction of mental models

Cognitive Decoupling

Question 14

Type 1

Answer 14

Quick
Easy
Automatic
Not conscious processing
Low computational power
Emotional/intuitive

Question 15

Type 2

Answer 15

slow
controlled
conscious processing
high computational power
intellectual/reasoning