Quiz on Decision-Making and Reasoning

What does Classical Decision Theory assume about decision makers?

• They are always irrational.

• They avoid making decisions.

• They are fully informed about all options.

• They rely solely on heuristics.

What is the goal of Subjective Expected Utility Theory?

• To maximize pain.

• To seek pleasure and avoid pain.

• To minimize decision-making time.

• To ignore psychological factors.

What is satisficing in decision-making?

• Avoiding all risks.

• Accepting what is good enough.

• Exhaustively seeking the best option.

• Making decisions based on emotions.

What does the availability heuristic rely on?

• Expert opinions.

• Historical data.

• Statistical probabilities.

• Recent and vivid information.

What is the framing effect?

• The reliance on past experiences.

• The use of statistical data.

• The tendency to ignore context.

• The impact of how information is presented.

What does overconfidence bias refer to?

• Underestimating one's abilities.

• Relying on group consensus.

• Overvaluing one's skills and judgment.

• Being overly cautious in decisions.

What is the gambler's fallacy?

• Relying on statistical analysis.

• Assuming all outcomes are independent.

• Ignoring previous results.

• Believing past events influence future outcomes.

What does the sunk cost fallacy involve?

• Avoiding losses at all costs.

• Making decisions based on current value.

• Continuing investment due to past costs.

• Investing based on future potential.

What is groupthink?

• Promoting individual decision-making.

• Analyzing all possible outcomes.

• Premature decision-making to avoid conflict.

• Encouraging diverse opinions.

What is deductive reasoning?

• Reasoning from specific instances to general conclusions.

• Drawing conclusions from general statements.

• Making decisions based on emotions.

• Using statistical data to make choices.