Week Four

Question 1

Anchoring and Adjustment

Answer 1

“People make estimates by starting from an initial value that is adjusted to yield the final answer” (Tversky & Kahneman 1974, p. 1128).

Question 2

Question: Do people use anchoring and adjustment to make quick estimations?

Answer 2

YES - People use anchoring and adjustment to make quick estimations.

Question 3

Anchoring effect (quantitative)

Answer 3

• High anchors lead to higher numerical estimates than low anchors

Question 4

Comparative Judgement

Answer 4

Determine whether an anchor has a higher or lower value than the actual answer

Question 5

Absolute Judgement

Answer 5

Providing an estimate of the actual answer

Question 6

Question: Do people rely on randomly generated numbers to make quick estimations?

Answer 6

YES - People use generated anchors to make estimations

Question 7

Question: Does plausibility of anchors influence estimates?

Answer 7

• There is an anchoring effect
• People use both implausible and plausible anchors to make estimates

Question 8

Question: Do people engage in the adjustment process when anchors are presented?

Answer 8

NO - People do not adjust from anchors

Question 9

Question: Do people engage in the adjustment process when they make estimations based on self-generated anchors?

Answer 9

When making estimations, people adjust from self-generated anchors but not for externally provided anchors