Biases and Errors in Decision Making

The video tutorial explains how biases, which are predispositions affecting decision making, can lead to errors and inefficiencies. It covers common biases like overconfidence, hindsight bias, and anchoring, and discusses their impact on logical conclusions and decision outcomes. The tutorial also highlights errors such as plunging in and frame blindness, emphasizing the importance of recognizing and mitigating biases to improve decision making.

Which of the following is an example of a bias that involves relying too heavily on the first piece of information encountered?

• Hindsight bias

• Overconfidence

• Anchoring effect

• Immediate gratification

What is the term for making decisions too quickly without considering all the evidence?

• Plunging in

• Short sightedness

• Frame blindness

• Escalation of commitment

How does frame blindness affect decision-making?

• By causing overconfidence in one's abilities

• By not realizing the influence of a predisposed perspective

• By focusing on immediate gratification

• By associating negative past experiences

What is a common error that arises due to bias in decision-making?

• Increased efficiency

• Failure to track information

• Improved group control

• Enhanced logical reasoning

What is the overall impact of biases on the decision-making process?

• They cause errors and inefficiencies

• They have no impact

• They lead to more accurate outcomes

• They enhance decision-making efficiency