ST2 - Lecture

Question 1

What are heuristics?

Answer 1

mental shortcuts to solve problems and make judgements quickly. They can be very helpful but may also lead to mistakes/biases

Question 2

What is the anchoring & adjustment heuristic?

Answer 2

individuals rely too heavily on an initial piece of information (known as the “anchor”) when making decisions. Once the anchor is set, people adjust their subsequent judgments or estimates based on this initial value

Question 3

What are the two brain systems for decision making?

Answer 3

Rapid & automatic vs. Slow & deliberate

Question 4

What is the rapid & automatic system?

Answer 4

acts automatically, very fast, effortless, with associate thinking

Question 5

What is the slow & deliberate system?

Answer 5

deliberate, slow, tiresome and does logic reasoning

Question 6

What is cognitive bias?

Answer 6

The systematic error that results from the use of a heuristic