week 7

Question 1

decision making

Answer 1

• identifying and choosing alternative solutions that lead to an end desired result

Question 2

Simon’s normative models

Answer 2

bounded rationality
-> constraints that restrict rational desicion making

• > satisficing
• > choosing a sloution that meets a minimum standard of acceptance

Question 3

the optimizing model

Answer 3

• need for a decision
• > whats important
• > alternatives
• > assess them
• > choose the best

Question 4

heuristics

Answer 4

• rule of thumb
• > people use to make decisions and judgements quickly and efficiently
• > mental shortcuts
• > coming to a conclusion or decision

Question 5

decision making biases

Answer 5

• status quo bias
• > anchoring bias
• escalation of commitment
• > confirmation bias
• > framing bias

Question 6

• status quo bias

Answer 6

• -> refers to a preference for the current state of affairs
• -> current baseline is taken as a reference point, and any change from that is perceived as a loss

decision making biases

Question 7

-> anchoring bias

Answer 7

–> occurs when decision makers are influenced by the first information received about a decision

decision making biases

Question 8

• escalation of commitment

Answer 8

–> refers to the tendency to stick to an ineffective course of action even when it is unlikely that the bad situation can be reversed

decision making biases

Question 9

confirmation bias

Answer 9

• refers to seeking or attending more to information that supports your initial idea, belief or attitude

Question 10

framing bias

Answer 10

-> refers to the tendency to consider risks about gains differently than risks pertaining to losses

Question 11

overconfidence bias

Answer 11

-> tendency to be overconfident about estimates or forecasts

Question 12

estimating / forecasting biases

Answer 12

-> availability heuristic is tendency to base decisions on information that is readily available in memory

Question 13

forecasting (dawes)

Answer 13

• intuitive judgement never beats a weighted regression

Question 14

two disciplines

Answer 14

• > gestalt
• -> a person has a problem
• -> has a goal and reaquires thought
• > information processing theory
• -> incremental steps to be followed after a particular problem re-presentation was generated

Question 15

problem solving as search

Answer 15

• problem space
• > problem solver’s internal representation of a problem
• problem states
• > states of knowledge
• operators
• > the means of moving from one state to another

Question 16

two types of heuristics

Answer 16

• hill climbing
• > always opt for a step that would move him or her higher
• > local considerations
• means end analysis
• > takes into account the bigger picture
• > reduce the difference between the current goal state

Question 17

creating problem solving model

Answer 17

• exploring the challenge
• > people are supposed to identify, clarify, and overwise clearly define the problem to be confronted
• idea finding or idea generation
• > generate ideas for possible solutions to problems as it has been defined or represented
• preparing for action
• > choose one of the possibilities produced during idea generation and refine it

Question 18

creativity

Answer 18

• production of high quality, original and elegant solutions to problems
• more than idea creation
• a form of performance
• finding and solving problems and offering new solutions
• iterative process

Question 19

economic models of decision making - racial economic model

Answer 19

• decision making is and should be a rational process

- sequence of steps that enhance probability of attaining a desired outcome