PROBLEM-SOLVING & DECISION MAKING

Algorithm

Step-by-step procedure that guarantees a solution

Heuristic

Mental shortcut that speeds up problem-solving

Representativeness Heuristic

Judging likelihood based on similarity

Availability Heuristic

Judging likelihood based on ease of recall

Insight

Sudden realization of a solution (“aha” moment)

Confirmation Bias

Seeking information that supports existing beliefs

Fixation

Inability to see a problem from a new perspective

Mental Set

Using strategies that worked before but may not now

Overconfidence

Being more confident than correct

Belief Perseverance

Holding onto beliefs despite contradictory evidence

Intuition

Fast, automatic, unconscious decision-making

Priming

Exposure to stimuli influences response

Framing

Decisions influenced by how information is presented

Gambler’s Fallacy

Belief that past events affect future randomness

Sunk-Cost Fallacy

Continuing due to prior investment