Chapter 11 (Making Decisions)

Question 1

mental activities that take place in choosing among alternatives

Answer 1

decision making

Question 2

has to do with selecting ways of thinking and acting to server your ends or goals or moral imperatives

Answer 2

rational decision making

Question 3

when the information available overwhelms the cognitive processing available

Answer 3

cognitive overload

Question 4

probabilities that are influenced by characteristics of the estimator

Answer 4

subjective probability

Question 5

probabilities that are NOT influenced by characteristics of the estimator

Answer 5

object probability

Question 6

shortcuts or rules of thumb to solve a problem

Answer 6

heuristic

Question 7

particular words that are more easily thought of stand out more in ones mind

Answer 7

availability heuristic

Question 8

generally expect that a random process will always produce random results

Answer 8

representativeness heuristic

Question 9

people evaluate outcomes as changes from a reference point, their current state

Answer 9

framing effect

Question 10

when an initial starting point has an effect on a final estimate

Answer 10

anchoring

Question 11

the greater tendency to continue an endeavor once an investment in money, effort, or time has been made

Answer 11

sunk cost effect

Question 12

seeing nonexistent relationships

Answer 12

illusory correlation

Question 13

consistently exaggerate what could have been anticipated in foresight

Answer 13

hindsight bias

Question 14

the tendency to search only for information that will confirm one’s initial hunch or hypothesis

Answer 14

confirmation bias

Question 15

when you weigh your own intuitions more heavily than any objective information

Answer 15

overconfidence bias

Question 16

define ideal performance under ideal circumstances

Answer 16

Normative models

Question 17

tell us how we “ought” to make decisions

Answer 17

prescriptive models

Question 18

detail what people actually do when they make decisions

Answer 18

descriptive models

Question 19

most decision making is done during a phase of “prechoice screeing of options”

Answer 19

image theory

Question 20

the three images in image theory

Answer 20

value image (morals, principles), trajectory image (goals), strategic image (plans)

Question 21

experts are most likely to rely on intuition, mental simulation, making metaphors, and recalling or creating stories

Answer 21

recognition-primed decision making

Question 22

examines how the brain interacts with he environment to enable us to make complex decisions

Answer 22

neuroeconomics

Question 23

play a large role in decision making

Answer 23

frontal lobes