PSYCH203 // LECTURE 9 // DECISION MAKING

An educational infographic illustrating decision-making theories, including Expected Value Theory, Prospect Theory, and cognitive biases, with engaging visuals and diagrams.

Decision Making Mastery Quiz

Test your knowledge on decision-making theories and concepts with our engaging quiz. Dive into topics like Expected Value Theory, Prospect Theory, and biases that influence our choices every day.

Challenges await you in the following areas:

Descriptive vs. Normative Decision Models
Framing and Sunk Cost Effects
Heuristics and Biases
Decision-Making Phases

32 Questions8 MinutesCreated by DecidingMind247

Expected Value Theory AND Subjective Utility Theory belong to which models?

Descriptive Decision Models

Normative (Rational)

Reasoning & Logic

Expected value

Framing & Sunk Cost Effects, Prospect Theory, Heuristics & Biases, Recognition-Primed Decision Making (RPD), all belong to which model?

Descriptive Decision Models

Normative (Rational)

Reasoning & Logic

Expected value

Reasoning & Logic Inductive & Deductive Reasoning belong to which model?

Descriptive Decision Models

The SRK Model

Normative (Rational)

Expected value

�economic man & woman” base decisions on maximising the expected value (payoff), is the definition of which theory?

Subjective utility theory

Economic theory

Maximizing expected value theory

Expected value theory

Subjective Utility Theory attempts to.....

Contextualize decision making

Make decision making subjective

Base decision making on subjective utilities

Eat cake while making decisions

People don’t make the absolutely best decisions they make decisions that are good enough, this is called what?

Sacrificing

Satisficing

Making-do

Coming-up-short

People take shortcuts in making decisions based on their past experiences, this is called what?

Heuristics & Biases

Discrimination Bias

Experience bias

Heuristic Bias

Slight changes in wording the question (the problem frame) result in different decisions, this is called what?

The sunk cost effect

The shortcut effect

The Framing effect

The problem-change effect

Money and effort you’ve already spent (futilely) shouldn’t affect your decision, this is called what?

The money effect

The Sunk Cost Effect

The framing effect

The futilely effect

We make decisions based on gains and losses rather than final assets, what is this called?

Non-final function

Function of gains and losses

Value function

Outcome function

What are the Two phases in decision-making process?

Editing phase, Evaluation phase

Construction phase, conclusion phase

Introductory phase, ending phase

Modeling phase, concluding phase

Organising and reformulating the options as a prospect (gain or loss) to simplify choice, is the process of which phase?

Evaluation phase

Cake phase

Editing phase

Prospective phase

evaluating each of the edited prospects and choosing the one of highest value, is a description of which phase?

Evaluation phase

Cake phase

Editing phase

Prospective phase

in obtaining information, Cue simplicity is...

Early information carries the most weight

Attention to a limited number of sources

(As-if Heuristic) the reliability or value of an information source is not considered

Prominent information is given more weight

in obtaining information, Cue primacy is...

Early information carries the most weight

Attention to a limited number of sources

(As-if Heuristic) the reliability or value of an information source is not considered

Prominent information is given more weight

in obtaining information, Cue reliability is...

Early information carries the most weight

(As-if Heuristic) the reliability or value of an information source is not considered

Attention to a limited number of sources

Prominent information is given more weight

in obtaining information, Cue salience is...

Attention to a limited number of sources

Prominent information is given more weight

Early information carries the most weight

(As-if Heuristic) the reliability or value of an information source is not considered

In selecting actions, Restricted range is...

only consider a few possible courses of action (elimination by aspects)

Avoid actions that might cost, unpleasantness of a loss is greater than the pleasure of a gain of the same magnitude (Framing Effect)

Stick with course of action even though the conditions have changed (Sunk Costs Effect)

Overestimate of one’s own skills or knowledge

In selecting actions, Loss aversion is...

Only consider a few possible courses of action (elimination by aspects)

Stick with course of action even though the conditions have changed (Sunk Costs Effect)

Avoid actions that might cost, unpleasantness of a loss is greater than the pleasure of a gain of the same magnitude (Framing Effect)

Overestimate of one’s own skills or knowledge

In selecting actions, Cognitive fixation is...

Avoid actions that might cost, unpleasantness of a loss is greater than the pleasure of a gain of the same magnitude (Framing Effect)

Stick with course of action even though the conditions have changed (Sunk Costs Effect)

Overestimate of one’s own skills or knowledge

Only consider a few possible courses of action (elimination by aspects)

In selecting actions, Overconfidence Bias is...

Avoid actions that might cost, unpleasantness of a loss is greater than the pleasure of a gain of the same magnitude (Framing Effect)

Stick with course of action even though the conditions have changed (Sunk Costs Effect)

Only consider a few possible courses of action (elimination by aspects)

Overestimate of one’s own skills or knowledge

Experts recognise a pattern and recall a single course of action (looks like intuition) without comparing & contrasting all possible alternatives, is called what?

Recognition-Primed Decision Making

Naturalistic Decision Making

The SRK Model

A & B

To work well, in which model, must you have seen lots of previous examples (expertise) and have good situation awareness?

Recognition-Primed Decision Making

The SRK Model

Naturalistic Decision Making

A & B

During decision-making, emotional and visceral representations associated with an option (from prior experience) are re-activated to implicitly influence decision making, what is this called?

Somatic Marker Hypothesis

The Iowa Gambling Task

Deductive fallacies

Emotional and visceral hypothesis

What is Deductive Reasoning

Reasoning from the specific to the general

Reasoning from the general to the specific

Starts with premises

Conditional arguments

What are Syllogisms?

Confirming the consequence

Deductive fallacies

Conditional arguments (if-then arguments)

VMpfc

What is Inductive Reasoning?

Reasoning from the general to the specific

Reasoning from the specific to general (bottom up)

Conditional arguments (if-then arguments)

Confirming the consequence

PSYCH203 // LECTURE 9 // DECISION MAKING

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