Decision Making

Question 1

Rational choice theory

Answer 1

Make decision by seeing how likely something is to happen, judging value of the outcome and multiplying the 2
-ie 10%chance of getting $500 vs 20% chance of getting $2000

Question 2

Judging frequencies and probabilities

Answer 2

• we are better at judging frequencies rather than probabilities
• ie doctors predicting the chance of breast cancer based on probability vs frequency

Question 3

Availability bias

Answer 3

Items that are more readily available in memory are judged a having occurred more frequently

Question 4

Moral decision making video

Answer 4

• anterior Cingulate; calls on frontal lobes to resolve conflict
• we are more likely to have a problem with solutions to things that invite our emotions (ie pulling train track switch vs pushing man of bridge)

Question 5

Heuristic

Answer 5

• fast strategies hat facilitate decision making
• availability bias is an example of this
• mental short cuts, rules of thumb

Question 6

Algorithm

Answer 6

• rules that guarantee a solution to the problem

- opposite of heuristics

Question 7

Conjunction fallacy

Answer 7

Two events are more likely to occur together than each individual event

• ie people think that Lisa being a bank teller and active in the feminist mvt is more likely even though it’s impossible
• ex of heuristics

Question 8

Representativeness heuristic

Answer 8

• making a probability judgement by comparing an object or event to a prototype of the object/event
• ie people think there is a higher probability that Harry is a lawyer or engineer based on description even though it’s the same
• heuristic

Question 9

Framing effects

Answer 9

Ppl give diff answers to the same problem depending on phrasing

• ie 70% effectiveness of a drug vs 30% failure
• same data, different conclusions

Question 10

Sunk cost fallacy

Answer 10

Making decision based on what they already invested into the situation
-ie if you pay $100 for a concert and you get sick, you still go because you pad for it

Question 11

Prospect theory-decision making error

Answer 11

People choose to take on risk when evaluating losses and avoid risk when evaluating gains

• simplify info and choose best value
• assumes people take risks
• ie apt is $400 per month but you get a $10 discount if you pay y certain time; vs apt is $390 and up get fined for not paying on time

Question 12

Frequency format hypothesis-decision making error

Answer 12

Our Minds notice how frequently things occur, not how likely they Re to occur

Question 13

Decision making and the brain

Answer 13

• prefrontal damage=less emotion during risky decision making
• insensitivity to future consequences
• healthy people=more prefrontal lobe activation
• similar effects in substance-dependent individuals

Question 14

Syllogistic reasoning

Answer 14

Determining if a conclusion from 2 statements exists if these statements are assumed to be true

Question 15

Belief bias-reaching conclusions

Answer 15

People tend to accept conclusions that are believable rather than logical
-syllogistic reasoning

Question 16

Neuroscience of risky decision making-study

Answer 16

• controls-without prefrontal damage
• patients-with prefrontal damage
• learn to play card game-good deck and bad deck
• bad deck=mild electric shock
• ppl without damage could strategize to not get bad deck

Question 17

Means ends analysis

Answer 17

• looking for means/steps to reduce differences btwn current situation and goal
  1) analyze goal state
  2) analyze current state
  3) list differences
  4) reduce differences-direct means; subgoal; find similar problem with known solution

Question 18

Analogical problem solving

Answer 18

Solving a problem by using a solution that works for a different problem
-ie using bridge solution to laser a tumor

Question 19

Insight

Answer 19

-restructuring problem so it becomes a solvable problem

Question 20

Functional fixedness

Answer 20

Seeing the function of objects as fixed

-ie making a candle holder out of a match box and thumbtacks

Question 21

Insight problem solvers

Answer 21

• right temporal lobe action 1/3 sec before solution was reported
• anterior cingulate active before solving problem
• insight used in those with positive mood

Question 22

Reasoning-reaching conclusions

Answer 22

-organizing info into steps to reach conclusion

Question 23

Practical reasoning

Answer 23

Figuring out what to do

Question 24

Theoretical reasoning

Answer 24

• reasoning to arrive at a belief
• ie friend saying he won’t drive you to concert bc car is broken but then you see him there and come to conclusion that he was lying