Midterm

Question 1

What is the Availability bias

Answer 1

We overestimate the likelihood that something will occur when it is easy to recall or imagine. Think of things like famous actors or people. You may think that following their footsteps will help you succeed in life but that may not be the case.

Question 2

What is the Survivorship bias

Answer 2

It’s a type of bias that occurs when a successful subgroup is misrepresented as the entire group. So in other words you are making an assumption based upon data that isn’t completed yet.

Question 3

What is the Selection bias

Answer 3

When estimating the likelihood that something occurs, we fail to take into account how the evidence available to us was selected.

Question 4

What is the Framing effect

Answer 4

Drawing different conclusions based on the same information because it is presented (‘‘framed”) differently.

Question 5

What is Anchoring

Answer 5

A given piece of information can strongly influence (“anchor”) our estimates (even if there is no link between that information and our estimate).

Question 6

What is Loss aversion

Answer 6

We feel the negative impact of a loss more intensely than the positive impact of a fain of the same size.

Question 7

What is Sunk cost fallacy

Answer 7

Taking into account incurred and non-recoverable costs in deciding whether to continue with an activity or project (and this continue to invest in it)

Question 8

What is Endowment effect

Answer 8

We accord more value to something simply because we own it.
This effect is used a lot in marketing to make people buy their products more often.

Question 9

What is Confirmation bias

Answer 9

The tendency to search for, interpret favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Question 10

What is Belief bias

Answer 10

Accepting the validity of an argument simply because the conclusion sounds plausible or because you agree with the conclusion.

Question 11

What is Blind spot bias

Answer 11

Detect reasoning errors much more easily in the reasoning of others than in our own reasoning.

Question 12

What is Bandwagon effect

Answer 12

We adopt beliefs too quickly when they come from people in our group and blindly follow the behavior/decisions/opinions of the group.

Question 13

What is Self-overestimation

Answer 13

We overestimate our own talents and prospects in life.

Question 14

What is Dunning-Kruger effect

Answer 14

The tendency for lay people to overestimate their knowledge of something and of experts to underestimate their knowledge.

Question 15

What is Hindsight bias

Answer 15

We overestimate the probability that we would have accorded to the occurrence of a certain event after the event occurred.

Question 16

What is Outcome bias

Answer 16

retroactively judging a decision based on its result, not the evidence initially available.

Question 17

What is the gamblers falacy

Answer 17

The belief that, if an event has occurred less frequently than expected, it is more likely to happen again in the future.

Question 18

What is reliabilism

Answer 18

A belief is justified if it was produced by a process that is generally reliable in getting to the truth.

Question 19

What is the rule of thumb when it comes to external support

Answer 19

The amount of external support we should require before accepting a claim is proportional to the plausibility of the claim

Question 20

What is Hume’s maxim

Answer 20

Don’t accept a belief by testimony if it’s more likely that the testifier is incorrect, as opposed to the testimony being true.

Question 21

What is Occam’s razor.

Answer 21

When deciding between competing beliefs/theories/explanations one should chose the easier one

Question 22

What are Cognitive illusions

Answer 22

sometimes we fall for a fallacy due to it being a “Illusions”

Question 23

What is Relativism

Answer 23

Every claim is relative: there are no absolute truths

Question 24

What is the Base Rate fallacy

Answer 24

The tendency to give more weight to the event-specific information than we should

Question 25

What is the Dual Process theory of cognition

Answer 25

The theory that within our brains we have two Systems that govern it

Question 26

What is System 1

Answer 26

One of the two systems that controls our decision making. It governs more reflex related reactions and is considered the fast system

Question 27

What is System 2

Answer 27

One of the two systems that controls our decision making. It governs the more toughtful reactions and is considered the slow system

Question 28

What are heuristics

Answer 28

Simple rules of thumb that generally produce good results but can sometimes be misleading

Question 29

What is Hyperactive agency detection

Answer 29

We tend to discern the actions of an ‘agent’ ( a living being with intentions) in certain events too quickly

Question 30

What is Affect heuristic

Answer 30

A bias that is created when we follow our emotions to evaluate a situation