Exam 4 Flashcards
(107 cards)
The conjunction rule states that…
the probability of two events co-occurring is equal to or less than the probability of either event occurring alone
Making probable conclusions based on evidence involves _______ reasoning
Inductive
How do we evaluate whether something is true?
through formal reasoning
Types of formal reasoning
deduction and induction
Deduction
- theory-based inference
- top-down
- either true or false
- validation
Induction
- data-based inference
- bottom-up
- probabilistic conclusions
- prediction
Syllogism
a form of deductive reasoning; an instance of a form of reasoning in which a conclusion is drawn from two given or assumed premises, each of which shares a term with the conclusion, and shares a common or middle term not present in the conclusion
A syllogism is valid if…
the conclusion follows from the premises
Belief bias
tendency to think syllogism is valid if conclusion is believable
Belief-logic conflict
if conclusion is believable, people are less sensitive to validity
Induction
- drawing general conclusion from examples
- not guaranteed to be correct
- probabilistic conclusions
- prediction
What strengthens inductive reasoning?
frequency and representativeness
Frequency in induction
conclusion from many examples is more convincing than few
Representativeness in induction
generalization is more justified if examples and target case are more similar
Heuristic
- a rule of thumb
- not guaranteed to give right answer
- “fast and frugal”
Availability heuristic
to estimate the frequency of an event, assess how easily it comes to mind
- can be distorted by familiarity and salience
Representativeness heuristic
the likelihood that case A is a member of class B depends on how well A resembles members of B
- works often, but may be distorted by neglecting actual probabilities
Anchoring and adjustment
when making an evaluation, make an initial estimate (anchor) and then adjust this value to fit additional information
People are often ____ in the domain of gains and ____ in the domain of losses
risk averse; risk seeking
People avoid risk for…
gains
People seek risk when avoiding…
losses
Decoy effect
violation of consistence through third (irrelevant) option
People weigh ____ heavier than ____
losses; gains
Endowment effect
people value their goods more if they own them