Problem Solving Strategies and Biases

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is a key characteristic of a well-defined problem?

Clearly defined goals and constraints (correct)
Requiring innovative solutions with unknown resources
Having multiple acceptable solutions
Ambiguous goals and unclear constraints

An ill-defined problem is easily solved using a standard algorithm.

False (B)

What is the primary difference between satisficing and optimizing problem-solving approaches?

Satisficing seeks a satisfactory solution, while optimizing seeks the best possible solution.

The problem-solving approach that involves incremental adjustments to gradually improve a solution is known as ______.

hill climbing Signup and view all the answers

Which cognitive bias leads individuals to rely too heavily on an initial piece of information when making decisions?

Anchoring Bias (D) Signup and view all the answers

Functional fixedness is the tendency to see objects as only working in a particular way.

True (A) Signup and view all the answers

Which of the following is a key component of the IDEAL problem-solving framework?

Defining the problem (D) Signup and view all the answers

Explain how using analogies can help in problem-solving.

Analogies help transfer solutions from familiar problems to new, similar ones by identifying parallels. Signup and view all the answers

______ is a problem-solving strategy that involves breaking down a complex problem into smaller, more manageable parts.

Decomposition Signup and view all the answers

Match the following problem-solving biases with their descriptions:

Confirmation Bias = Favoring information that confirms existing beliefs Availability Heuristic = Overestimating the likelihood of events that are easily recalled Framing Effect = Drawing different conclusions based on how information is presented Hindsight Bias = Believing, after an event has occurred, that one would have predicted it Signup and view all the answers

Flashcards

Monte Carlo Simulation

The process of generating a probability distribution for the outcome of an uncertain event.

Standard Deviation

A statistical measure that quantifies the dispersion of actual returns around the average return for an investment.

Duration

A measure of how sensitive the price of a bond is to changes in interest rates.

Time Value of Money

The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.