BUS221 Lecture 1: Decision Making and Investment Strategies

These flashcards cover key concepts from the course related to decision-making processes and investment strategies, as taught in the lecture.

Critical Mindset

An approach that involves evaluating information and making decisions based on analysis and reasoning.

System 1

An automatic, quick decision-making process that operates on autopilot without self-awareness.

System 2

A slower, more deliberate decision-making process that requires effort and self-awareness.

Investment Plan A

An investment with a 15% failure risk, 40% chance of breaking even, and 45% chance of a 20% profit.

Investment Plan B

A safer investment with a 10% chance of losing half the investment, 20% chance of breaking even, and 70% chance of a 6% profit.

Linda Puzzle

A thought experiment demonstrating how people often use stereotypes in decision making, affecting judgment on probabilities.

Memo Assignments

Assignments contributing to a total of 15% of the course evaluation, designed to assess students' understanding.

Midterm

An exam covering content from the first five classes, weighted at 35% of the overall grade.

Final Exam

The concluding assessment of the course, accounting for 40% of the final grade.

Expected Retirement Savings

The anticipated amount saved for retirement, factoring in risk and returns from investment plans.