LSC 2193 - Cognitive Bias

What is an example of Information Bias?

• A student only studies topics they already understand well.

• A teenager believes their interests will never change.

• A fan claims they 'knew it all along' after a game.

• A smoker believes they won't develop health problems.

Answer explanation

The correct choice, 'A student only studies topics they already understand well,' exemplifies information bias as it reflects a tendency to focus on familiar information, neglecting new or challenging material.

What is a characteristic of Hindsight Bias?

• Believing you predicted an event after it happens.

• Ignoring unfamiliar topics on an exam.

• Assuming market success will last forever.

• Believing health problems won't occur despite evidence.

Answer explanation

Hindsight bias is the tendency to believe that we could have predicted an event after it has occurred. This is reflected in the correct choice, which states that one believes they predicted an event after it happens.

Which bias involves ignoring new innovative approaches?

• Information Bias

• End-of-History Bias

• Hindsight Bias

• Optimistic Bias

Answer explanation

Information Bias refers to the tendency to focus on existing information and ignore new, innovative approaches. This bias can hinder progress and adaptation to new ideas, making it the correct choice for this question.

What might a new business owner believe due to Optimistic Bias?

• Their company will succeed despite most startups failing.

• Their political views will never change.

• They predicted a market crash after it happened.

• They only study familiar topics for an exam.

Answer explanation

A new business owner may exhibit Optimistic Bias by believing their company will succeed, despite the fact that most startups fail. This bias leads them to underestimate risks and overestimate their chances of success.

The bias that involves a fan claiming they 'knew it all along' is called (a)   .

• Information Bias

• End-of-History Bias

• Hindsight Bias

• Optimistic Bias

Answer explanation

The bias where individuals believe they predicted an outcome after it has occurred is known as Hindsight Bias. This explains why fans claim they 'knew it all along' after the event.

What is an example of a shopper's behavior due to Information Bias?

• Buying a product just because it’s popular.

• Believing they won't develop health problems.

• Assuming interests will never change.

• Claiming they predicted an event after it happened.

Answer explanation

Buying a product just because it’s popular exemplifies Information Bias, where shoppers rely on popularity rather than personal research or needs, leading to potentially misguided purchasing decisions.

What is a characteristic of Optimistic Bias?

• Believing in success despite evidence to the contrary.

• Ignoring unfamiliar exam topics.

• Assuming political views will never change.

• Claiming outcomes were obvious after they happen.

Answer explanation

Optimistic Bias is characterized by the tendency to believe in positive outcomes, even when evidence suggests otherwise. This aligns with the correct choice: 'Believing in success despite evidence to the contrary.'

What is Confirmation Bias?

• Favoring information that confirms existing beliefs

• Choosing familiar options due to uncertainty

• Agreeing with a group to avoid conflict

• Ignoring all types of evidence

Answer explanation

Confirmation bias is the tendency to favor information that confirms our existing beliefs, leading us to overlook or dismiss contradictory evidence. This makes the first answer choice the correct one.

Adel is considering joining a new club at school, but he's unsure about what it involves. What does Ambiguity Bias involve?

• Avoiding new options due to uncertainty

• Favoring information that confirms beliefs

• Agreeing with a group to avoid conflict

• Ignoring all evidence

Answer explanation

Ambiguity Bias refers to the tendency to avoid new options due to uncertainty. Adel's hesitation about joining the club reflects this bias, as he may be uncertain about what the club entails.

Layla is deciding where to eat and chooses a familiar restaurant over a new one. Which scenario illustrates Ambiguity Bias?

• Choosing a familiar restaurant over a new one

• Reading only supportive news articles

• Agreeing with a boss's idea despite doubts

• Quickly reaching a verdict to avoid conflict

Answer explanation

Choosing a familiar restaurant over a new one illustrates Ambiguity Bias, as Layla prefers the known option to avoid the uncertainty and potential risks associated with trying something new.