30 Questions
According to Prospect Theory, how do people make decisions?
Based on potential gain or losses relative to their specific situation
What is the impact of losses compared to gains according to Prospect Theory?
Losses have a bigger impact than gains
Are people generally more loss averse or gain averse?
Loss averse
What is the point of Prospect Theory regarding losing and gaining the same amount?
People value losing more than gaining the same amount
What is the THM in relation to losing?
People hate to lose
What does avoiding loss mean in a gain frame?
Choosing the sure thing
What does taking a risk to gain money mean in a loss frame?
It's worth the gamble because it means you might not lose
What is preferred in a gain frame?
A sure gain
What is preferred in a loss frame?
A sure loss
According to Expected Utility Theory, what should a rational person do when making a decision?
Choose the option that maximizes expected utility
What is confirmation bias?
Being more responsive to evidence that confirms one's beliefs
What is the problem with induction?
It is only guaranteed if all possible instances have been experienced
What is the framing effect?
The tendency to be influenced by how information is presented
What is Prospect Theory?
The theory that people are risk averse when it comes to losses
What is the expected value of a gamble with a 1/20 chance of winning $100?
$5
What is the difference between positive and negative framing?
Positive framing is when information is presented in terms of gains, while negative framing is when information is presented in terms of losses
Which type of reasoning is guaranteed to be correct if the rules of logic are followed?
Deductive reasoning
What is the term for reasoning that constructs or evaluates general propositions that are derived from specific examples?
Inductive reasoning
What is a syllogism?
A logical argument that consists of two premises followed by a conclusion
What is belief bias?
The tendency to accept invalid conclusions if they are believable
What is the format of a conditional statement?
If x, then y
What is the difference between deductive and inductive reasoning?
Deductive reasoning is guaranteed to be correct, while inductive reasoning is not
What is the term for the first part of a conditional statement that provides a condition under which the second part is guaranteed to be true?
Antecedent
What is the Modus Ponens rule of logic?
If the antecedent holds, then the consequent may be inferred
What is the error in logic of Affirming the Consequent?
Assuming that if Q, then P is true
What is the Modus Tollens rule of logic?
If the consequent does not hold, then the negative of the antecedent can be inferred
What is the directionality of the inference in negative Modus Tollens?
If A, then B. Not B, therefore, not A
What is the Wason 4-card selection task?
A test of deductive reasoning where you choose a card based on a proposed rule
What is the proposed rule in the Wason 4-card selection task?
If there is a G on the side of the card, there is a 3 on the other side
What is induction?
Forming generalizations based on specific incidents, observations, or facts
"Test Your Knowledge on Induction and Confirmation Bias" - This quiz challenges your understanding of how induction works and how confirmation bias can impact our thinking. Learn about the limitations of induction and how biases can affect our conclusions. Keywords: induction, confirmation bias, probabilities, limitations.
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