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Biases

Total questions: 12

Worksheet time: 9mins

Name
Class
Date
1.

When people make bad decisions because they are so sure that they will be right, so they don’t plan, research, or think before making their decision. For example, a student doesn't prepare at all for a presentation because they are sure they will succeed and they are great at speaking, during the presentation, they end up rambling and freeze. They are unable to complete the presentation and feel embarrassed.

a)

Anchoring Bias

b)

Availability Bias

c)

Overconfidence Bias

d)

Risk Aversion

2.

When people make a “snap judgment” on the first piece of information they get and do not allow any new information to change their opinion (first impression).

a)

Availability Bias

b)

Anchoring Bias

c)

Risk Aversion

d)

None of the options are correct

3.

When people only want to hear information that proves that they are right and when someone mentions something against their opinion, they only focus on reasons why that person is wrong instead of listening to that opinion with an open mind.

a)

Anchoring Bias

b)

Availability Bias

c)

Risk Aversion Bias

d)

Confirmation Bias

4.

When people create strong opinions and make firm decisions based on only the easily available pieces of information without researching more deeply to get different perspectives and “the whole story”.  

a)

Overconfidence Bias

b)

Anchoring Bias

c)

Availability Bias

d)

None of the options are correct

5.

When a person realizes they have made a bad decision but continue going in the direction of that decision because they don’t want to accept that they were wrong.  People think that if they have already invested time, money or other resources into a decision, it would be a waste to change it when actually continuing makes it worse.

a)

Anchoring Bias

b)

Escalation of Commitment

c)

Risk Aversion

d)

None of the options are correct

6.

When people are afraid of taking risks and miss important opportunities because of this fear.

a)

Anchoring Bias

b)

Availability Bias

c)

I don't know

d)

Risk Aversion

7.

A retail company decides not to add an online platform for online shopping because it requires a big initial investment and they are afraid it might fail while their competitors decide to make the investment.  Five years later the company goes out of business while their competitors succeed by having millions of dollars of sales online. What bias impacted the decision made in this scenario?

(a)  

8.

A sales representative doesn’t prepare for a presentation because he thinks he’s an excellent public speaker.  When several unexpected questions are asked to him, he can’t answer them.

(a)  

9.

Lone Star buys Hi-Tech Inc. to expand their business but after 7 years, Hi-Tech Inc. has been a failure and is losing the company millions of dollars per year.  Instead of selling Hi-Tech Inc. for less than they bought it for and taking a one-time loss, Lone Star decides to keep Hi-Tech Inc and just hopes somehow the business will improve.

(a)  

10.

You read one news story online about a new movie being disappointing and decide not to see the movie because of the article. You do not research to find more information.

(a)  

11.

You hear a classmate, Jakub, expressing that he supports the death penalty. You dismiss Jakub and stop listening immediately because you disagree with him. Federica joins the conversation; Federica has the same view as you. You listen fully  to Federica as her view is the same as yours and you do NOT support the death penalty

(a)  

12.

An interview candidate has a good education but doesn’t have much work experience. You agree to interview him/her, but you have already decided that he is not the right candidate for the job because of the lack of experience. You have already made up your mind. You make your decision quickly based on the fact that he/she doesn't have much work experience. You will not change your mind even when the candidate is highly impressive during the interview.

(a)