Question 1

Coming up with an answer that is "good enough" is called (a) _____________.

Accepted Answer

A)  suitable solution
B)  adequacy
C)  bounded rationality
D)  satisficing

Question 2

According to __________theory,an explicit list of multiple sources can change the likelihood with which we view an event.

Accepted Answer

A)  support
B)  elaboration
C)  availability
D)  uncertainty

Question 3

Use the Allais paradox to explain the behavior of contestants on game shows such as Deal or No Deal.

Accepted Answer

The Allais paradox emphasizes the role o...

Question 4

The expected value or worth of an outcome at the time of decision is referred to as the ______________.

Accepted Answer

A)  decision utility
B)  expected utility
C)  marginal utility
D)  experienced utility

Question 5

Domasio argued that ____________ warns us that important events are about to occur.

Accepted Answer

A)  visual cues
B)  somatic markers
C)  learned probabilities
D)  certainty

Question 6

Participants are asked to maximize their gain while selecting cards from four different decks in the __________________.

Accepted Answer

A)  Las Vegas Payoff task
B)  Missouri Riverboat task
C)  Iowa Gambling task
D)  Wisconsin Card Sorting task

Question 7

One reason for dynamic inconsistency is that people tend to want _____________.

Accepted Answer

A)  high magnitude rewards
B)  immediate gratification
C)  delayed rewards
D)  consistent rewards

Question 8

Herbert Simon proposed the idea of _____________.

Accepted Answer

A)  marginal utility
B)  procedural invariance
C)  bounded rationality
D)  heuristic-based decision making

Question 9

You are watching golf on TV with a friend.You see someone make a hole-in-one on a short par three hole.Your friend asks if you think anyone else will make a hole-in-one.You say yes.Why?

Accepted Answer

A)  probability
B)  availability bias
C)  representativeness
D)  common occurrence

Question 10

Individual differences and circumstances influence _______________.

Accepted Answer

A)  actual utility
B)  social utility
C)  subjective utility
D)  expected utility

Question 11

When presented in isolation,the gambles used by Ellsberg produced ______________.

Accepted Answer

A)  no effects of ambiguity
B)  moderate ambiguity effects
C)  increased effects of ambiguity
D)  significant ambiguity effects

Question 12

The _________________ is an area of the brain active when shifting attention in anticipation of a reward.

Accepted Answer

A)  prefrontal cortex
B)  superior colliculus
C)  visual cortex
D)  lateral inferior parietal cortex

Question 13

The likelihood of a desirable outcome is its _______________.

Accepted Answer

A)  value
B)  expected utility
C)  probability
D)  contingency

Question 14

Describe the adaptive decision maker model being sure to include factors influencing the strategies used to make choices.

Accepted Answer

The assumption of the adaptive decision ...

Question 15

Briefly describe the equity premium paradox of investments.

Accepted Answer

In order to maximize gains,an investor s...

Question 16

Our tendency to choose certainty over ambiguity was demonstrated with the _____________.

Accepted Answer

A)  Ellsberg paradox
B)  Simon paradox
C)  Allais paradox
D)  judgment heuristic

Question 17

After an exam,you find out that you had a higher grade than Sam and that Sam had a higher grade than Rebecca.You correctly assume that you have a higher grade than Rebecca.This is an example of ______________.

Accepted Answer

A)  procedural invariance
B)  transitivity
C)  rationality
D)  intransitive choices

Question 18

The likelihood of a desirable outcome is its _______________.

Accepted Answer

A)  value
B)  expected utility
C)  probability
D)  contingency

Question 19

______________ theories of decision making tell us how we should behave while ______________ theories focus on how we actually behave.

Accepted Answer

A)  Conceptual,realistic
B)  Normative,descriptive
C)  Normative,prescriptive
D)  Prescriptive,observational

Question 20

You have $1000 to invest.You invest the entire sum in blue chip stocks.You tend to be ____________.

Accepted Answer

A)  loss-averse
B)  risk-seeking
C)  impulsive
D)  risk-adverse

Exam 9: Decision Making

______________ theories of decision making tell us how we should behave while ______________ theories focus on how we actually behave.

Correct AnswerverifiedShow Answer

Participants are asked to maximize their gain while selecting cards from four different decks in the __________________.

Correct AnswerverifiedShow Answer

After an exam,you find out that you had a higher grade than Sam and that Sam had a higher grade than Rebecca.You correctly assume that you have a higher grade than Rebecca.This is an example of ______________.

Correct AnswerverifiedShow Answer

The expected value or worth of an outcome at the time of decision is referred to as the ______________.

Correct AnswerverifiedShow Answer

Briefly describe the equity premium paradox of investments.

Correct AnswerverifiedIn order to maximize gains,an investor s...View AnswerShow Answer

Domasio argued that ____________ warns us that important events are about to occur.

Correct AnswerverifiedShow Answer

The likelihood of a desirable outcome is its _______________.

Correct AnswerverifiedShow Answer

Herbert Simon proposed the idea of _____________.

Correct AnswerverifiedShow Answer

When presented in isolation,the gambles used by Ellsberg produced ______________.

Correct AnswerverifiedShow Answer

Use the Allais paradox to explain the behavior of contestants on game shows such as Deal or No Deal.

Correct AnswerverifiedThe Allais paradox emphasizes the role o...View AnswerShow Answer

You are watching golf on TV with a friend.You see someone make a hole-in-one on a short par three hole.Your friend asks if you think anyone else will make a hole-in-one.You say yes.Why?

Correct AnswerverifiedShow Answer

According to __________theory,an explicit list of multiple sources can change the likelihood with which we view an event.

Correct AnswerverifiedShow Answer

The likelihood of a desirable outcome is its _______________.

Correct AnswerverifiedShow Answer

Describe the adaptive decision maker model being sure to include factors influencing the strategies used to make choices.

Correct AnswerverifiedThe assumption of the adaptive decision ...View AnswerShow Answer

Individual differences and circumstances influence _______________.

Correct AnswerverifiedShow Answer

One reason for dynamic inconsistency is that people tend to want _____________.

Correct AnswerverifiedShow Answer

Our tendency to choose certainty over ambiguity was demonstrated with the _____________.

Correct AnswerverifiedShow Answer

You have $1000 to invest.You invest the entire sum in blue chip stocks.You tend to be ____________.

Correct AnswerverifiedShow Answer

Coming up with an answer that is "good enough" is called (a) _____________.

Correct AnswerverifiedShow Answer

The _________________ is an area of the brain active when shifting attention in anticipation of a reward.

Correct AnswerverifiedShow Answer

theories of decision making tell us how we should behave while theories focus on how we actually behave.

Correct Answer
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In order to maximize gains,an investor s...
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Correct Answer
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Correct Answer
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Correct Answer
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The Allais paradox emphasizes the role o...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The assumption of the adaptive decision ...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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