🎯 JUDGMENT & DECISION MAKING

What is the difference between Judgment and Decision-making?

Judgment = estimate; Decision = choose.

Why should we study errors in judgment and decision-making?

Studying errors reveals how thinking actually works.

What is the difference between Normative and Descriptive?

Normative = how we should think; Descriptive = how we actually think.

What is the Availability heuristic?

The Availability heuristic judges based on what’s easy to recall.

What is the Representativeness heuristic?

The Representativeness heuristic judges based on similarity.

What is the Gambler’s fallacy?

The Gambler’s fallacy is the expectation that random events will 'even out'.

What does the Conjunction fallacy involve?

The Conjunction fallacy involves thinking that specific outcomes are more likely than general outcomes.

What does the Linda problem illustrate?

The Linda problem illustrates the Conjunction fallacy.

What is the Anchoring effect?

The Anchoring effect means the initial number biases judgment.

What is Hindsight bias?

Hindsight bias is the belief of 'I knew it all along' after an event occurs.

How are Confidence and accuracy related?

Confidence and accuracy are often not strongly related.

What does Expected Utility Theory suggest?

Expected Utility Theory suggests to choose the option with the highest probability × value.

What is the Framing effect?

The Framing effect states that decisions depend on wording.

What is the Sunk-cost fallacy?

The Sunk-cost fallacy refers to continuing a decision because of past investment.