Decision Making

Evaluating alternative options and choosing one option among them is called the theory of bounded rationality.

F

If someone is making a decision using the additive strategy, he or she would eliminate alternatives based on their attributes.

F

The availability and representativeness heuristics are not useful and should be entirely avoided.

F

Risky decision making occurs when an individual makes a decision __________.

b. under uncertain conditions

Belief bias may cause one to make invalid conclusions seem valid or vice versa.

T

Fast and frugal heuristics allow one to make quick decisions with limited information.

T

How an issue is framed has an effect on decision making.

T

The abundance of choices available to people when making a decision can cause them to feel overwhelmed.

T

What does the subjective utility of a decision involve?

a. The probability that the decision an individual makes will be the incorrect one.

When does the confirmation bias occur?

a. When an individual only researches information that is consistent with personal beliefs.

The __________ heuristic is the method in which one chooses the alternative they recognize and infers that it has greater value.

b. recognition

Recent scientific research was released about global warming and climate change. Both defendents and opponents of the theory of global warming saw the information as supporting their own beliefs. Both sides fell victim to __________.

c. confirmation bias

Mark is 6'4, weighs 200 pounds, and is very muscular. People who think that Mark is more likely to be a football player than an engineer are victims of __________.

c. the representativeness heuristic