Question 1

When negotiating for salary with a future employer,it is wise to make an initial offer that is ______,because of the anchoring bias

Accepted Answer

High

Question 2

Which of the following can serve as a cognitive explanation for misconceptions of chance?
A)People expect probabilities to even out.
B)People remember unusual sequences better than ones that appear more random.
C)People judge probabilities of future events as contingent on past events.
D)All of the above.

Accepted Answer

All of the above can serve as cognitive explanations for misconceptions of chance. People may expect probabilities to even out, remember unusual sequences better than ones that appear more random, and judge probabilities of future events as contingent on past events.

Question 3

The anchoring bias affects our value estimates,but not our ability to retrieve information from memory.

Accepted Answer

The anchoring bias primarily influences our initial estimates or decisions, but it can also indirectly affect how we retrieve information from memory by guiding which information we consider relevant or recall first, based on the initial anchor.

Question 4

In order to avoid falling prey to ease of recall bias,a manager must discount the number of successful and unsuccessful actions taken by employees situated closer to the manager,relative to those of employees who are farther away.

Accepted Answer

This statement is true. Ease of recall bias refers to the tendency to rely more heavily on easily recalled information. Managers may be more likely to recall actions taken by employees who work in closer proximity to them, and therefore may overvalue their successes and failures. In order to avoid this bias, managers should make a conscious effort to discount the importance of proximity and give equal weight to the actions of all employees.

Question 5

The saying that "There is no such thing as bad publicity" is consistent with the notion that even unflattering publicity increases others' familiarity with the subject of the story.The _______ heuristic could account for such a phenomenon.

Accepted Answer

The answer of The saying that "There is no such...

Question 6

Which bias occurs only after the true outcome of an event is known?
A)Retrievability.
B)Ease of recall.
C)The hindsight bias.
D)None of the above.

Accepted Answer

The hindsight bias is also known as the "I knew it all along" effect, which refers to the tendency for people to falsely believe they would have predicted an outcome once the outcome is already known. This bias occurs only after the true outcome of an event is known, which distinguishes it from biases like retrievability and ease of recall, which occur during the process of trying to remember information. Therefore, the correct answer is (C) the hindsight bias.

Question 7

In many organizations,the most competent employees are usually poor in tutoring subordinates and new employees.Indicate the bias that is responsible for this phenomenon and explain how this phenomenon occurs.

Accepted Answer

The answer of In many organizations,the most competent employees are...

Question 8

When do people use base-rate data correctly?
A)When they are instructed to do so.
B)When there is no other information available.
C)When this information confirms their initial hypotheses.
D)All of the above

Accepted Answer

People are more likely to use base-rate data correctly when there is no other information available, as they have to make their decisions based solely on the available statistics.

Question 9

Experience helps countervail the anchoring bias,such that anchoring effects are rarely observable in expert judgments.

Accepted Answer

Experts are not immune to the anchoring bias; their judgments can still be influenced by initial values or information, although they might be less susceptible than novices.

Question 10

Which bias accounts for the "sophomore jinx" phenomenon,in which athletes who did exceptionally well in their rookie season usually follow with a disappointing second season? Explain the reason for this phenomenon.

Accepted Answer

The answer of Which bias accounts for the "sophomore jinx"...

Question 11

A survey among tenants of shared apartments asked each tenant what percentage of the cleaning around the apartment he or she does.The survey found that aggregating the percentages for each apartment produces an average of much more than 100%.This result may be due to what bias?
A)Ease of recall.
B)Insensitivity to sample size.
C)Insensitivity to base rates.
D)The conjunction fallacy.

Accepted Answer

The result is likely due to ease of recall bias, where individuals overestimate their contributions because the tasks they personally complete are more memorable to them.

Question 12

Two groups of people are given score sheets of yesterday's games in a professional league.One group is given the scores of yesterday's games in the National Basketball Association,and the other group is given the scores of yesterday's games in the National Hockey League.The groups are then asked to estimate the average ticket price for a game in the sport of which they read the scores.
How will the two groups differ in their estimates? What bias is responsible for this difference?

Accepted Answer

The answer of Two groups of people are given score...

Question 13

The human mind is better at remembering information that is
A)Interesting.
B)Emotionally arousing.
C)Recently acquired.
D)All of the above.

Accepted Answer

The human mind is better at remembering information that is interesting, emotionally arousing, and recently acquired. Interesting information captures our attention and makes us more likely to remember it. Emotionally arousing information has a strong impact on our memory because it triggers the release of hormones that help consolidate the memory. Recently acquired information is still fresh in our minds and hasn't had a chance to fade from our memory yet. Therefore, all of the above are good choices for something that someone is more likely to remember.

Question 14

Drake is a department manager in a company which has recently decided to hire a new analyst.After interviewing all candidates,Drake recommended the company hire Anne,but senior management preferred to hire Beth.Drake argued that Beth is an inferior choice,but agreed to accept her for a trial period of six months.At the end of the trial period,Drake evaluated Beth's performance as poor.Although this evaluation may have been fair,it is also possible that it was biased by:
A)The curse of knowledge.
B)The confirmation trap.
C)Overconfidence.
D)Misconceptions of chance.

Accepted Answer

Drake's initial preference for Anne may have created a confirmation bias, leading him to evaluate Beth's performance more critically and ultimately label her performance as poor. This bias is known as the confirmation trap, where individuals seek out evidence that confirms their pre-existing beliefs, while disregarding or discounting evidence that contradicts them.

Question 15

The fact that heavy advertising of a company's or a product's name on billboards and in the media makes that name stick in people's memory as bearing high quality is an example of what bias?
A)Insensitivity to base rates.
B)Retrievability.
C)The conjunction fallacy.
D)Ease of recall.

Accepted Answer

This bias is known as the ease of recall bias, where people tend to associate easily recalled information with higher quality or importance. The heavy advertising of a company's or product's name makes it easy to recall, which can lead people to perceive it as high quality or important.

Quiz 3: Common Biases

When negotiating for salary with a future employer,it is wise to make an initial offer that is ______,because of the anchoring bias

Which of the following can serve as a cognitive explanation for misconceptions of chance?

The anchoring bias affects our value estimates,but not our ability to retrieve information from memory.

In order to avoid falling prey to ease of recall bias,a manager must discount the number of successful and unsuccessful actions taken by employees situated closer to the manager,relative to those of employees who are farther away.

The saying that "There is no such thing as bad publicity" is consistent with the notion that even unflattering publicity increases others' familiarity with the subject of the story.The _______ heuristic could account for such a phenomenon.

Which bias occurs only after the true outcome of an event is known?

In many organizations,the most competent employees are usually poor in tutoring subordinates and new employees.Indicate the bias that is responsible for this phenomenon and explain how this phenomenon occurs.

When do people use base-rate data correctly?

Experience helps countervail the anchoring bias,such that anchoring effects are rarely observable in expert judgments.

Which bias accounts for the "sophomore jinx" phenomenon,in which athletes who did exceptionally well in their rookie season usually follow with a disappointing second season? Explain the reason for this phenomenon.

A survey among tenants of shared apartments asked each tenant what percentage of the cleaning around the apartment he or she does.The survey found that aggregating the percentages for each apartment produces an average of much more than 100%.This result may be due to what bias?

The human mind is better at remembering information that is

The fact that heavy advertising of a company's or a product's name on billboards and in the media makes that name stick in people's memory as bearing high quality is an example of what bias?