Heuristics & Biases

Avery read a terrifying story about a young girl who was kidnapped from her back yard. She now no longer lets her small children play by themselves in the yard, despite the fact that she regularly lets them play in the bathtub by themselves. This is an example of:

• The anchoring effect

• The availability heuristic

• The representative bias

• The simulation heuristic

Charles is looking at a proposal for a startup. He finds a startup that has many of the same features of a number of other really successful startups that he's seen. He decides that this is a great option for investing. This is an example of:

• Availability heuristic

• Anchoring effect

• Representativeness heuristic

• Confirmation bias

Ali decided to go car shopping, and found an excellent car. She asked the dealer how much it costs, and the dealer said, $21,000. Ali is crestfallen, until the dealer says, "But I can sell it to you for $18,000. Ali considers this a good deal and buys the car. This is an example of:

• Anchoring effect

• Hindsight bias

• Confirmation bias

• Representativeness heuristic

Two men, Charles and Sam are each heading to the airport to catch a plane. Both men are caught in traffic jams. They each arrive at the airport. Charles is told that he missed his flight by one and a half hours. Sam is told that he missed his flight by 10 minutes.

Who is more upset, Charles or Sam? _________________

• Charles

• Sam