Deck 9: Decision Making

Question 1

Changes in the desirability of an outcome are measured in the _____________.

A)variance
B)expectancy change score
C)marginal utility
D)decision coefficient

Answer 1

marginal utility

Question 2

Your roommate likes to make difficult decisions by mapping optional courses of action,outcomes and consequences,and uncertain event contingencies.She likes to use ______________.

A)option charts
B)contingencies graphs
C)flow charts
D)decision trees

Answer 2

decision trees

Question 3

In decision making,a(n)__________ is our estimate of the likelihood that a particular outcome will occur if we choose a particular alternative.

A)option
B)belief
C)probability
D)consequence

Answer 3

belief

Question 4

Variance preferences are also known as ____________.

A)wagering preferences
B)payoff preferences
C)gambling tendencies
D)risk attitudes

Question 5

____________,____________,and ______________ are known as the ABC's of a decision.

A)Actions,beliefs,causes
B)Alternatives,beliefs,consequences
C)Actions,benefits,cognitions
D)Antecedents,beliefs,causes

Question 6

A ______________ is based on the value of each option to an individual and the likely outcome of each option.

A)decision
B)judgment
C)problem solution
D)rationale

Question 7

You have $1000 to invest.You invest the entire sum in a new technology company that you think is about ready to make it big.You tend to be ____________.

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

Question 8

The likelihood of a desirable outcome is its _______________.

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

Question 9

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

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

Question 10

The ___________ pattern typical of selling price x subjective probability graphs of behavioral research on the expected utility model indicates that subjects determined selling price by multiplying probability and payoff.

A)curvilinear
B)fanning-out
C)finger
D)linear

Question 11

Individual differences and circumstances influence _______________.

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

Question 12

Consequences consist of _________,_________,and ___________.

A)cost,benefits,efficacy
B)outcomes,value,utility
C)rewards,punishments,additional options
D)effort,expectations,usefulness

Question 13

Our evaluation of consequences is influenced by __________ and ____________.

A)personality type,motivation
B)situational demands,goals
C)theoretical outcomes,actual outcomes
D)personal values,goals

Question 14

__________________ theories of decision making were initially developed by economists and mathematicians.

A)Normative
B)Analytical
C)Descriptive
D)Market-based

Question 15

You have $1000 to invest.You place the sum in your savings account.You tend to be ____________.

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

Question 16

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

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

Question 17

According to the ________________ model,expected utility is equal to the sum of the probability times the utility of each possible outcome.

A)decision probability
B)expected utility
C)economic decision
D)decision tree

Question 18

The fanning-out pattern typical of selling price x subjective probability graphs of behavioral research on the expected utility model indicates that subjects determined selling price by multiplying ________________.

A)frequency and payoff
B)probability and payoff
C)value and probability
D)consequences and value

Question 19

_______________ involves the assessment of the courses of action and a determination of the course of action to take.

A)Problem solving
B)Reasoning
C)A decision
D)A judgment

Question 20

A(n)______________ is a graphical display for summarizing the components of a decision.

A)options chart
B)contingency graph
C)decision tree
D)flow chart

Question 21

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

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

Question 22

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

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

Question 23

Neurons in the _________________ of the monkey brain are active when tracking the probability and magnitude of a reward.

A)lateral inferior parietal cortex
B)hypothalamus
C)amygdala
D)prefrontal cortex

Question 24

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

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

Question 25

________________ proposed the idea of bounded rationality.

A)Herbert Simon
B)Daniel Kahneman
C)John Anderson
D)Amos Tversky

Question 26

If you conduct a single-cell recording study examining the activity associated with rewarded events when those events are rewarded,you are examining _________________.

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

Question 27

Sam buys an autographed picture of his favorite football player for $300 on eBay.Upon showing it off,he is offered $350 for it.Sam indicates that he could not possibly sell for less than $450.This is an example of _______________.

A)decision weights
B)loss aversion
C)the endowment effect
D)marginal utility

Question 28

Our ability to think rationally about information within our cognitive limitations is known as ________________.

A)conscious processing
B)counterfactual thinking
C)executive functioning
D)bounded rationality

Question 29

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 ______________.

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

Question 30

In assessing deaths by mode of transportation,people will show a tendency to ___________ the chance of dying in a plane crash and _________ the chance of dying in a car accident.

A)overestimate,underestimate
B)overestimate,accurately estimate
C)underestimate,overestimate
D)accurately estimate,underestimate

Question 31

Our capacities for __________,__________,and ___________ limit our ability to think rationally.

A)attention,memory,emotion
B)perception,attention,memory
C)attention,working memory,executive control
D)attention,working memory,learning

Question 32

Utility curves are helpful for relating ____________ to ____________.

A)utility,value
B)losses,gains
C)subjective evaluation,an objective measure
D)normative,descriptive theories

Question 33

People prefer __________ when it comes to gains and ___________ when it comes to losses.

A)impulsivity,cautiousness
B)facts,chance
C)risk-seeking,risk-aversion
D)certainty,uncertainty

Question 34

Suppose you just lost $500 playing poker.To compensate for this loss,research suggests that you would want to win at least _______________.

A)$1000
B)$250
C)$500
D)$750

Question 35

"Would you pay $3.75 for a gallon of gas?" and "How much would you be willing to pay for a gallon of gas?" are two ways of asking the same question about preferences.This is an example of ______________.

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

Question 36

___________ involves simplifying and combing some quantities and evaluation gains and losses in relation to a reference point.

A)Reduction theory
B)Anchoring
C)Framing
D)Comparative processing

Question 37

Satisficing is a(n)_____________.

A)optimum strategy
B)algorithm
C)heuristic
D)maximizing utility

Question 38

Research with monkeys and humans has found that the ____________ system in involved with the encoding of utility values in the brain.

A)epinephrine
B)acetylcholine
C)serotonin
D)dopamine

Question 39

Statements like "What are the odds of that ever happening" are consistent with ____________.

A)decision affect theory
B)dynamic inconsistency
C)temporal discounting
D)fast-and-frugal strategies

Question 40

Herbert Simon proposed the idea of _____________.

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

Question 41

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

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

Question 42

In what way does the process of decision making change under decision affect theory?

Question 43

Briefly describe the equity premium paradox of investments.

Question 44

Draw a utility curve and state the important features of decision making represented by the curve.

Question 45

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

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

Question 46

Describe elimination by aspects using a recent purchase you have made.

Question 47

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

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

Question 48

Contrast normative and descriptive theories of decision making.

Question 49

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

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

Question 50

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

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

Question 51

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

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

Question 52

Any time a 50 percent free throw shooter goes to the line you expect him to make a free throw and miss a free throw.This expectation is consistent with _______________.

A)availability
B)basketball intelligence
C)categorical bias
D)representativeness

Question 53

Patients with damage to the ventromedial prefrontal cortex,like Phineas Gage,have _________________.

A)slurred speech
B)increased sociability
C)a drop in overall intelligence
D)impaired decision making

Question 54

Provide an example,in terms of the expected utility model,to illustrate how different decisions have different values for different people.

Question 55

Define consequences in terms of decision theory.

Question 56

Define procedural invariance.

Question 57

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

Question 58

Describe a situation in which a reversal of preference would likely occur.

Question 59

Compared to delayed choices,immediate choices tend to activate areas of the brain associated ______________.

A)motor response
B)emotion
C)visual processing
D)episodic memory

Question 60

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?

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

Question 61

Describe the stages of processing associated with prospect theory.

Question 62

A ______________ is based on the value of each option to an individual and the likely outcome of each option.

A)decision
B)judgment
C)problem solution
D)rationale

Question 63

A(n)______________ is a graphical display for summarizing the components of a decision.

A)options chart
B)contingency graph
C)decision tree
D)flow chart

Question 64

Utility curves are helpful for relating ____________ to ____________.

A)utility,value
B)losses,gains
C)subjective evaluation,an objective measure
D)normative,descriptive theories

Question 65

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

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

Question 66

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

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

Question 67

Our ability to think rationally about information within our cognitive limitations is known as ________________.

A)conscious processing
B)counterfactual thinking
C)executive functioning
D)bounded rationality

Question 68

Consequences consist of _________,_________,and ___________.

A)cost,benefits,efficacy
B)outcomes,value,utility
C)rewards,punishments,additional options
D)effort,expectations,usefulness

Question 69

Research with monkeys and humans has found that the ____________ system in involved with the encoding of utility values in the brain.

A)epinephrine
B)acetylcholine
C)serotonin
D)dopamine

Question 70

The likelihood of a desirable outcome is its _______________.

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

Question 71

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

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

Question 72

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