Deck 13: Judgement and Decision Making

Question 1

Galotti's (2007) most striking finding was that people consistently limited the amount of information considered. This is consistent with Simon's (1957) notion of what?

A) Base-rate information
B) Working memory capacity
C) Satisficing
D) Intelligence
E) Bounded rationality

Answer 1

Bounded rationality

Question 2

_____ are evaluated in terms of their accuracy; in contrast, the value of _____ is typically assessed in terms of the consequences of those decisions

A) responses, decisions
B) judgements, decisions
C) decisions, judgements
D) decisions, responses
E) judgements, responses

Answer 2

judgements, decisions

Question 3

According to Tversky and Kahneman, heuristics can greatly ___ the effort associated with ____

A) reduce, cognitive tasks
B) increase, cognitive tasks
C) reduce, stategies
D) increase, strategies
E) ignore, decisions

Answer 3

reduce, cognitive tasks

Question 4

What did Gigerenzer and Hoffrage (1999, p. 425) define as "the process of encountering instances in a population sequentially"?

A) Expected utility
B) Base-rate neglect
C) The conjunction fallacy
D) Natural sampling
E) Queued series

Question 5

According to von Neumann and Morgenstern (1944), the probability of a given outcome multiplied by the utility of the outcome yields the:

A) Attained utility
B) Prospect
C) Expected utility
D) Explicit outcome
E) Maximum utility

Question 6

Oppenheimer's (2004) study involving assessment of name pairs (one famous, one non-famous), indicated what about the availability heuristic?

A) The heuristic is prone to effects of temperature
B) Knowledge of the Cartesian distance between two cities influences recognition speed
C) Deliberate thought can override the heuristic
D) Younger participants employed the heuristic more often than older adults
E) Repetition priming cancels out the effect of the heuristic

Question 7

Standard explanations of the conjunction fallacy assume it occurs because of the ____ perceived ____ of the additional information given the description

A) high, hypothesis
B) high, probability
C) neutral, cues
D) low, probability

Question 8

According to Riege and Teigen (2017), the "tendency to judge the probability of the whole set of outcomes to be less than the total probabilities of its parts" is called the:

A) Inverse rule
B) Negative probability
C) Subadditivity effect
D) Base rate
E) Hebbian activation

Question 9

When people judge the probability that an object or event (A) belongs to a class or process (B), they will often apply which heuristic?

A) Contagion
B) Peak-end
C) Representativeness
D) Anchoring
E) Fluency

Question 10

The mistaken belief that the probability of a conjunction of two events is greater than the probability of one of them is called what?

A) Conjunction fallacy
B) Framing effect
C) Loss aversion
D) Omission bias
E) Sunk-cost effect

Question 11

Base-rate information is what?

A) The amount of knowledge someone has
B) The level of processing capacity someone has
C) The absolute amount of information there is on something
D) The prior belief in the probability of an event occurring prior to its occurrence
E) The interestingness of information held

Question 12

What did the Rev. Thomas Bayes theorise about?

A) The evolutionary emphasis placed on natural sampling
B) The heuristic, or rule of thumb, of representativeness
C) The probability of two related hypotheses being correct
D) Simple heuristics that make us smart
E) The existence of God

Question 13

Decision avoidance is accounted for in which model?

A) Dual-process model
B) Rational-emotional model
C) Logical intuition model
D) Complex models
E) Emotional-conflict model

Question 14

What is using the knowledge that only one out of two objects is recognised to make a judgement?

A) Representativeness heuristic
B) Recognition heuristic
C) Availability heuristic
D) Base-rate heuristic
E) Knowledge heuristic

Question 15

Tverky and Kahneman argued most people given judgement tasks use:

A) Conjunction fallacy
B) Bounded rationality
C) Status quo bias
D) Omission bias
E) Heuristics

Question 16

What is the assumption that representative or typical members of a category are encountered most frequently?

A) Representativeness heuristic
B) Recognition heuristic
C) Availability heuristic
D) Base-rate heuristic
E) Knowledge heuristic

Question 17

What is the assumption that the frequencies of events can be estimated accurately by the accessibility in memory?

A) Representativeness heuristic
B) Recognition heuristic
C) Availability heuristic
D) Base-rate heuristic
E) Knowledge heuristic

Question 18

According to Oh et al. (2016), satisficing is what?

A) The tendency to prefer inaction to action when engaged in risky decision-making
B) Selection of the best choice in decision-making
C) Prioritising some sources of information while ignoring others
D) Expending additional resources to justify some previous commitment that has not worked well
E) The influence of irrelevant aspects of a situation (e.g., wording of the problem) on decision-making

Question 19

Gigerenzer and Hoffrage (1995, 1999) argued that our experience of the world typically comes not in the form of probabilities, but in the form of:

A) Differential equations
B) Percentages
C) Ratios
D) Categories
E) Frequencies

Question 20

According to support theory, a more ______ description draws attention to aspects of the event less obvious in the _____ description

A) explicit, non-explicit
B) unpleasant, non-explicit
C) pleasant, explicit
D) non-explicit, explicit
E) implicit, explicit

Question 21

In Anderson's (2003) rational-emotional model, the omission and status quo biases were both explained in terms of:

A) Regret and anxiety
B) Anxiety and fear
C) Regret and fear
D) Sadness and anxiety
E) Avoidance and fear

Question 22

According to prospect theory, people are typically much more sensitive to potential ______ than to potential ______.

A) gains, losses
B) losses, gains
C) pain, pleasure
D) pleasure, pain
E) guilt, pleasure

Question 23

The phenomenon describing how people overestimate the intensity and duration of their negative emotional reactions to loss is called:

A) Impact bias
B) The fatalist's paradox
C) Pessimism
D) Pain expansion
E) Focal magnification

Question 24

The theory whereby decision-makers eliminate options by considering one relevant attribute or aspect after another, is known as:

A) Utility theory
B) Support theory
C) Natural sampling theory
D) Prospect theory
E) Elimination-by-aspects theory

Question 25

Which types of theories focus on how people should make decisions, rather than on how they actually make them?

A) Framing theories
B) Social functionalist theories
C) Bounded rationality theories
D) Risk aversion theory
E) Normative theories

Question 26

Framing effects are found when decisions are influenced by irrelevant aspects of the situation (e.g. when people focus on potential gains), according to which theory?

A) Fast and frugal heuristics
B) Support theory
C) Natural sampling
D) Prospect theory
E) Utility theory

Question 27

According to prospect theory, people should overweigh the probability of which of the following?

A) Common events
B) Rare events
C) Schema-inconsistent occurrences
D) Social cues
E) None of these

Question 28

The study by Dawes (1988), on whether to return from a holiday or not, is an example of:

A) The visibility heuristic
B) The representativeness heuristic
C) The availability heuristic
D) Planning
E) The sunk-cost effect

Question 29

When steps were taken to ensure that participants fully understood the story, by making the category of a bank teller explicit, Tversky and Kahneman (1983) found that:

A) The conjunction fallacy disappeared statistically
B) The conjunction fallacy increased in magnitude
C) There remained a strong (though somewhat reduced) conjunction fallacy effect
D) People became more risk averse
E) People became more risk seeking

Question 30

What aspect of risky decision-making was studied by Wang (1996)?

A) Concerns about fairness
B) Individual differences
C) The dominance principle
D) The probability of an outcome
E) Self-esteem

Question 31

The study by Samuelson and Zeckhauser (1988), about retirement funds, is a demonstration of what form of decision avoidance caused by emotional factors?

A) Attentional bias
B) Status quo bias
C) Omission bias
D) The dominance principle
E) Utility theory