Chapter 9

Question 1

Rational Choice Theory

Answer 1

10% of winning $1,000
Or
20% of winning $600

10%X1,000=$100
20%X600=$120

Question 2

Frequency

Answer 2

Number of times something will happen

Question 3

Probabilities

Answer 3

Likelihood something will happen

Question 4

Heuristic

Answer 4

Fast and efficient strategy that may facilitate decision making

Question 5

Algorithm

Answer 5

Well defined sequence of procedures that guarantee a solution

Question 6

Conjunción Fallacy

Answer 6

Belief that the likelihood of two events occurring together is greater than either event occurring alone

Question 7

Representativeness Heuristic

Answer 7

Making a probability judgement based on comparison to your prototype

Question 8

Framing Effect

Answer 8

Answers to a problem differ due to the wording or the way the question is framed

Question 9

Sunk-Cost Fallacy

Answer 9

Current Decisions based on previous investments

Question 10

Personality

Answer 10

Combination of Traits

Question 11

Trait

Answer 11

Relatively consistent tendencies to think, feel, or behave in characteristic ways

Question 12

OCEAN

Answer 12

Openness
Conscientiousness
Extroversion
Agreeableness
Neuroticism