Bias in Management Reading

What is the primary purpose of heuristics in decision-making?

• To carefully analyze every detail of a decision

• To save time and make decisions quickly

• To eliminate biases in judgment

• To ensure decisions are always logical

Which bias occurs when people base decisions on information that is easiest to remember?

• Confirmation Bias

• Availability Bias

• Anchoring Bias

• Overconfidence Bias

What is an example of representativeness bias?

• A manager assumes a casually dressed candidate is suitable for a startup

• A manager ignores negative sales data for a campaign

• A manager relies on the first salary number mentioned

• A manager claims they predicted a stock drop after it happened

How does confirmation bias affect decision-making?

• It leads people to rely on stereotypes

• It causes people to focus only on information that supports their beliefs

• It makes people overconfident in their knowledge

• It influences decisions based on first impressions

What is anchoring bias?

• Relying on the first piece of information heard

• Believing one is more knowledgeable than they are

• Making decisions based on stereotypes

• Ignoring evidence that disagrees with beliefs

Which bias can lead to underestimating risks due to excessive self-confidence?

• Hindsight Bias

• Overconfidence Bias

• Framing Bias

• Availability Bias

What is an example of hindsight bias?

• A manager claims they predicted a stock drop after it happened

• A manager focuses only on positive customer comments

• A manager assumes a casually dressed candidate is suitable for a startup

• A manager relies on the first salary number mentioned

How does framing bias influence decision-making?

• By changing reactions based on how information is presented

• By causing people to rely on stereotypes

• By making people overconfident in their knowledge

• By focusing only on recent events

What is the danger of confirmation bias in business decisions?

• It prevents objective evaluation of evidence

• It leads to reliance on stereotypes

• It causes overconfidence in knowledge

• It influences decisions based on first impressions

Which bias occurs when people believe decisions were more predictable than they actually were?

• Availability Bias

• Hindsight Bias

• Anchoring Bias

• Representativeness Bias