Question 1

Confirmation bias occurs when people:

Accepted Answer

Confirmation bias is the tendency to favor information that confirms one's existing beliefs or decisions, and to disregard or undervalue information that contradicts them.

Question 2

The tendency of people not to seek information that is difficult to get when making decisions is known as:

Accepted Answer

The tendency of people not to seek information that is difficult to get when making decisions is known as availability bias. This bias refers to the human tendency to rely heavily on the first piece of information presented (known as anchoring bias) or the information that is most easily available or memorable (known as availability bias). Overconfidence bias refers to the tendency to overestimate one's ability or level of knowledge, while confirmation bias refers to the tendency to seek out information that confirms our pre-existing beliefs.

Question 3

Unavailability bias occurs when judgements are made on information which is readily available.

Accepted Answer

Unavailability bias is not a recognized term; the correct term is "availability bias," which occurs when judgments are made based on information that is readily available.

Question 4

Women are more likely to take longer to make a decision than men.Which of the following is a probable reason for this?

Accepted Answer

Studies have shown that women tend to overthink problems and decisions more than men, which can lead to taking longer to make a decision.

Question 5

The ___________ bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information.

Accepted Answer

The description matches the definition of the anchoring bias, which is the tendency to rely too heavily on the first piece of information encountered and not adjust sufficiently based on subsequent information.

Question 6

Jackson continues to put money into car repairs even though he knows the car is a "lemon".This is an example of the availability bias.

Accepted Answer

The answer of Jackson continues to put money into car...

Question 7

Which of the following decision making biases are people with high and low levels of intelligence likely to fall prey to?

Accepted Answer

The answer of Which of the following decision making biases...

Question 8

Personality does not influence our decisions.

Accepted Answer

Personality shapes our attitudes, beliefs, values and preferences, which all play a significant role in our decision-making process.

Question 9

Twenty years of study have found that women spend the same amount of time as men analysing the past,the present and the future.

Accepted Answer

The statement is false. The studies have actually found that women tend to spend more time than men analysing the past, present and future.

Question 10

Men and women make decisions differently,and this gap in decision performance continues to grow as we get older.

Accepted Answer

Research indicates that while there may be differences in decision-making styles between men and women, the gap in decision performance does not necessarily grow with age. Factors such as experience, context, and individual differences play a more significant role.

Question 11

The fact that 'Choices made today are largely a result of choices made over the years' illustrates the role of historical precedents in decision making.

Accepted Answer

The statement acknowledges that past choices have influenced present choices, therefore historical precedents play a role in decision making.

Question 12

Bob is making a decision to buy a new printer.He is reflecting on his previous purchase of office equipment and based on the savings they made he believes that decision was sound.This is an example of hindsight bias.

Accepted Answer

This is an example of outcome bias, where Bob evaluates the quality of a decision based on its outcome rather than the decision-making process itself. Hindsight bias involves believing an event was predictable after it has already happened.

Question 13

Our tendency to believe that we can predict the outcome of random events is known as:

Accepted Answer

The options provided (chance bias, gambling effect, risk aversion) do not accurately describe the tendency to believe we can predict the outcome of random events. This tendency is more accurately referred to as the "illusion of control," which is not listed among the options.

Question 14

It has been well documented that individuals escalate commitment to a failing course of action when they view themselves as responsible for the failure.

Accepted Answer

This phenomenon is known as the "sunk cost fallacy" and describes the tendency for individuals to continue investing time, money, and resources into a project or course of action even when the evidence suggests that it is no longer viable. The feeling of responsibility and ownership of the project can lead to a reluctance to admit failure and a desire to see it through to the end.

Question 15

Define the term "escalation of commitment".

Accepted Answer

The answer of Define the term "escalation of commitment"....

Question 16

Which organisational constraint is more likely to occur in bureaucracies?

Accepted Answer

Bureaucracies are known for their strict adherence to formal rules and regulations, which can make formal regulations the most likely organisational constraint to occur. Performance evaluation and reward systems may also be important in bureaucracies, but formal regulations are typically the cornerstone of bureaucratic systems. Historical precedents may also play a role, but they are typically less important than formal regulations.

Question 17

An increased commitment to a previous decision in spite of negative information is termed:

Accepted Answer

Escalation of commitment refers to the tendency for people to continue to invest resources, including time, money, and effort, into a decision or project even when negative information about its feasibility or effectiveness becomes apparent. This can lead to significant losses and inefficiencies, but is often driven by factors such as sunk costs, public accountability, and a desire to avoid admitting failure.

Question 18

Which of the following is not an organisational constraint on decision making?

Accepted Answer

Personality is not an organisational constraint on decision making, as it is a personal characteristic of an individual and not a factor within the organization. The other options are all factors within the organization that can influence decision making - performance evaluation can impact decisions made to achieve specific goals, reward systems can impact the choices made to receive perks or promotions, and formal regulations can impact the legal and ethical boundaries in decision making.

Question 19

Overconfidence bias occurs when people over-estimate their abilities to make sound decisions.What type of person is most likely to fail through overconfidence bias?

Accepted Answer

The answer of Overconfidence bias occurs when people over-estimate their...

Question 20

Discuss at least four common biases and errors in decision making.

Accepted Answer

The answer of Discuss at least four common biases and...

Quiz 6: Perception and Individual Decision Making