Chapter 1

Question 1

What characterizes system 1 decision-making?

Answer 1

Intuitive, fast, automatic, effortless, implicit and emotional.
quickly interpreting verbal and visual information.
commonly used when we are busy or rushed

Question 2

When should system 2 be used instead of system 1?

Answer 2

should guide the most important decisions. involves rational and systematic approach to problem solving

Question 3

What are the 6 steps in the rational decision-making process in system 2?

Answer 3

1) defining the problem
2) identifying criteria
3) weighing the criteria
4) generating alternatives
5) rating each alternative
6) computing the optimal decision

Question 4

What are heuristics and what role do they play in decision-making?

Answer 4

pratical rules or simplification strategies
reduce the complexity of judgments but can also introduce biases or judmental errors

Question 5

How does the availability heuristic work?

Answer 5

relies on examples that readily come to mind.
when a situation reminds us of vivid or emotionally impactful events stored in memory

Question 6

What is the representativeness heuristic?

Answer 6

judgments based on traits that match previously formed stereotypes. Categorize individuals

Question 7

What is the confirmation heuristic?

Answer 7

we seek evidence that supports an already-formed hypothesis to reinforce we already belive

Question 8

Descarte’s error

Answer 8

Decision-making isn’t purely rational, emotions play a vital role