Exam 18: Biases in Managerial Decision Making

If less relevant information is presented in an interesting manner, it tends to have a greater impact on final decisions than if presented in a dry manner.

Group polarization is the opposite of groupthink.

Which of the following heuristics involve judgment based on imagination?

Sample size is paid insufficient attention to when people rely heavily on the representativeness heuristic.

Short-term profits are less vivid and attention-drawing than long-term profits.

Judgmental accuracy is influenced by the amount of processing effort a decision maker is likely to allocate to a judgment task.

Various television shows about shark attacks makes it easy to imagine that one could be attacked by a shark when visiting the beach.This assumption is based on what effect?

In preference reversal, subjects prefer one gamble when they anchor on outcomes and another when they anchor on probabilities.

Concrete information has less impact on our decisions than abstract information.

When an event is ambiguous, what guides interpretations? What bias can this lead to?

What does Diagnosticity depend upon?