Cognitive Biases in Decision Making
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Questions and Answers

A company is deciding between two investment options: Option A offers a guaranteed annual return of 5%, while Option B is riskier but has the potential for a 15% annual return. What decision-making heuristic might lead an investor to choose Option A, even if Option B has a higher expected value?

  • Loss aversion (correct)
  • Availability heuristic
  • Representativeness heuristic
  • Anchoring bias

In a negotiation, one party opens with an unexpectedly high demand. Which cognitive bias is most likely to influence the other party's perception of a reasonable settlement range?

  • Confirmation bias
  • Halo effect
  • Anchoring bias (correct)
  • Framing effect

A project manager consistently underestimates the time and resources needed to complete tasks, despite having a history of similar projects running over schedule and over budget. Which bias is most likely affecting the project manager's estimates?

  • Optimism bias (correct)
  • Automation bias
  • Hindsight bias
  • Status quo bias

A marketing team is deciding whether to launch a new product. Market research shows that 60% of consumers like the taste of the product, but 40% do not. If the team focuses on the 60% approval rate to justify launching the product, which cognitive bias are they exhibiting?

<p>Confirmation bias (B)</p> Signup and view all the answers

An analyst believes that a stock will perform well because it is similar to another stock that recently had high returns, despite lacking specific evidence for this stock. Which cognitive bias is most likely influencing the analyst's judgment?

<p>Representativeness heuristic (D)</p> Signup and view all the answers

During a long-distance run, in what order does the body typically utilize nutrients for energy?

<p>Carbohydrates, then fats, then protein (A)</p> Signup and view all the answers

Which of the following explains why animals in cold environments, such as seals, have large amounts of fat?

<p>To serve as insulation, reducing heat loss and maintaining body temperature. (D)</p> Signup and view all the answers

What type of energy storage is used, when someone does a short burst of exercise, like sprinting?

<p>Short-term carbohydrate stores (A)</p> Signup and view all the answers

If a person's diet is severely lacking in both carbohydrates and fats, which of the following is most likely to occur?

<p>The body will primarily use protein as an energy source, potentially affecting muscle mass. (B)</p> Signup and view all the answers

How does the body balance the storage of carbohydrates and fats, considering that they are both energy sources?

<p>The body stores a limited amount of carbohydrates for quick energy and a larger amount of fats for long-term energy needs. (A)</p> Signup and view all the answers

Flashcards

What are nutrients?

Substances in food needed for health.

Main energy nutrients?

Carbohydrates and fats are the primary sources; protein is a backup.

Carbohydrate storage?

A small amount is stored in the liver and muscles.

Fat storage?

Stored in special cells under the skin and around organs.

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Fat's additional role?

Provides heat insulation.

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Nutrient Definition

Chemical elements or compounds required for an organism's survival.

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Carbohydrates

Primary energy sources for the body, found in foods like bread and fruits.

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Fats

Stored energy reserve in the body, providing insulation and protecting organs.

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Carbohydrate storage form?

Nutrient stored in limited amounts in the liver and muscles, ready for quick energy release.

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Fat storage location

Nutrient stored in cells beneath the skin and around organs, providing insulation.

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