Reasoning & Decision-Making

Question 1

Reasoning

Answer 1

Levering incomplete information about the world in order to draw further conclusions.

Question 2

Decision Making

Answer 2

Choosing a specific course of behavioural actions among multiple possibilities.

Question 3

Expected Utility Hypotheses (EUT)

Answer 3

When people are faced with multiple options, they will choose the one that returns the highest likely value

Question 4

Neuroeconomics

Answer 4

Economic Theory, Neuroscience, Psychology

Question 5

Propositions

Answer 5

Any statement that can be true or false and can refer to properties of the external world.

Question 6

Premises

Answer 6

A set of beliefs: estimates about whether certain possible facts about the world are true.

Question 7

How do you draw conclusions?

Answer 7

From proposition & premises. Decision based on the available information.

Question 8

Deduction

Answer 8

The conclusion follows logically from the initial premise.

Question 9

Syllogism

Answer 9

Reasoning in which a conclusion is derived from 2+ propositional statements.

Question 10

Categorical Syllogism

Answer 10

Consists of 3 statements: 2 premises and 1 conclusion
As long as both premises are true, the conclusion will also be true.

Question 11

Categorical Example

Answer 11

All animals eat food, a rabbit is an animal, therefore rabbits eat food.

Question 12

Belief Bias

Answer 12

The tendency to rate more believable conclusions are more valid. Decreased with unlimited time to consider.

Question 13

Atmospheric Effect

Answer 13

People rate a conclusion as valid as long as the qualifying word (all, some) in the premise match those in the conclusion.

Question 14

Mental Models

Answer 14

People construct mental simulations of the world in their minds based on syllogisms.

Question 15

Conditional or Hypothetical Syllogism

Answer 15

Uses Antecedent & Consequent.

Question 16

Modus Ponens

Answer 16

Affirming the Antecedent
If Ant is tru, we can conclude that the consequent is true.

Question 17

Modus Tollens

Answer 17

Denying the Consequent
Observing the consequent to be false and concluding the ant to be fake.

Question 18

Induction

Answer 18

Going beyond available data to make more general assumptions.

Question 19

Generalization

Answer 19

Extrapolating from a limited number of observations to draw a conclusion about a broader population or category. (Most people have cell phones, everyone must have a cell phone)

Question 20

Statistical Syllogism

Answer 20

Going from observations about a group to inferences about an individual. ( most have, steve must have)

Question 21

Argument From Analogy

Answer 21

Observing two things share on property and assuming they share another property. (We are both jewish, we must both be liberal)

Question 22

One-Shot Learning

Answer 22

When a concept is learned from a single example.

Question 23

Heuristics

Answer 23

Mental short-cuts that goes straight to inference.

Question 24

Slow Reasoning

Answer 24

Serial logical analysis of information.

Question 25

Fast Reasoning

Answer 25

Heuristic-based processing.

Question 26

Affect Heuristic

Answer 26

The tendency to overestimate the risk of events that generate strong emotional reactions.

Question 27

Anchoring Heuristics

Answer 27

Tendency for people to rely on initial piece of information.

Question 28

Representative Heuristics

Answer 28

Tendency for people to rely on the fact that targets are trying to make decisions about conform to a specific category.

Question 29

Conjunctional Fallacy

Answer 29

Assuming two specific conditions are more probable than a single one.

Question 30

Base-Rate Fallacy

Answer 30

Ignoring the underlying probability of the event in favour of present evidence.

Question 31

Culture Cognition

Answer 31

The tendency to hold beliefs about risk that are consistent with their broader social and moral values

Question 32

Cognitive Process in Decision Making

Answer 32

Sensation, Perception, Attention, STM, LTM

Question 33

Loss Aversion

Answer 33

People tend to prefer avoiding losing something as compared to gaining of equal value.

Question 34

Endowment Effect

Answer 34

People place a higher value on objects they already own over those they don't own yet.

Question 35

IKEA Effect

Answer 35

People pay more money for products that are assembled versus not assembled.

Question 36

Status-Quo Effect

Answer 36

A tendency to leave things as they currently are, rather than making a change.

Question 37

Framing Effect

Answer 37

The way in which questions and information are organized influences decisions even when content is identitcal.

Question 38

Integral Emotions

Answer 38

Emotions directly related to a decision being made.

Question 39

Incidental Emotions

Answer 39

Unrelated emotions someone is experiencing at the time of decision.

Question 40

vmPFC

Answer 40

Somatic Marker Hypothesis - Involved in emotional reactions.

Question 41

Nudge Theory

Answer 41

Businesses try to encourage people to make certain decisions by introducing small changes to the environment. Making people opt-out instead of opt-in.