Psychology

Question 1

Overconfidence

Answer 1

overestimate our abilities and our level of control over a given situation

Question 2

Illusion of control

Answer 2

common in day trading, sports betting

Question 3

Persuasion Bias

Answer 3

susceptibility to making decisions based on social influence and the repetition of information

Question 4

Recency Effect

Answer 4

tendency to best remember the information that was presented last

last item
closing argument

Question 5

Regret Aversion

Answer 5

Crippling effect that comes form fearing a negative outcome

regret-averse people avoid making a decision altogather

Question 6

Representatives Heuristic

Answer 6

Labeling something because of it’s connection to a larger group with similar characteristics

Question 7

Salience Bias

Answer 7

Tendency to focus on highly emotional events/information and be impacted by it

Question 8

Status Quo Bias

Answer 8

Seek-out the path of least resistance; primitive survival instinct

Question 9

Sunk-cost Fallacy

Answer 9

Tendency to follow-through on something even though the costs outweigh the benefits

Question 10

Loss Aversion

Question 11

Gambler’s Fallacy

Question 12

Law of Small Numbers Bias

Question 13

Familiarity Bias

Question 14

Endowment Effect

Question 15

Mental Accounting

Question 16

Disposition Effect

Question 17

Bandwagon Effect

Question 18

Availability Bias

Question 19

Emotional Bias

Question 20

Affinity Bias