Behavioral Decision Making and Judgment\nMidterm Exam

A consumer bids higher for 7oz ice cream in a 5oz cup than for 8oz in a 10oz cup. This best illustrates:

A grocery store sign “Buy 18 Snickers bars for your freezer” increases average purchase quantity. This bias is:

After an event occurs, people often claim “I knew it would happen.” This is:

People overestimate the probability of shark attacks because news coverage makes them easy to recall. 

When choosing an apartment, you reject any option with rent over €450 without trade‑offs. This strategy is:

If you recognize only one city name, you judge it to be larger. This is:

Most people stick with the default option for organ donation. This is:

Adding a dominated “decoy” option increases choice share of the target option. This is:

Consumers tend to choose the middle‑priced option in a set of three. This is:

Offering 24 jam flavors reduces purchase rate compared to 6 flavors. This shows:

Psychology focuses on ______; economics focuses on ______.

Bounded rationality means people:

Researchers asked participants to first write down the last two digits of their phone number, then estimate the price of a bottle of wine. Results showed that people with higher two-digit numbers tended to give significantly higher price estimates for the wine, even though they were told the phone number digits were completely unrelated to the product.

This outcome best illustrates which concept?

A rare disease affects 1 out of every 1,000 people in a population. A test for this disease correctly identifies 99% of people who have it (true positive rate) and correctly identifies 95% of people who do not have it (true negative rate).

A random person tests positive. Many people intuitively think this person almost certainly has the disease. What cognitive error does this reasoning demonstrate?

After reading several positive reviews about a new movie, a person decides to watch it. During the film, they mostly notice scenes that support their expectation of enjoying it, while ignoring or downplaying obvious flaws. Afterward, they insist the movie was excellent. This tendency to favor information that confirms one’s existing beliefs is called:

A fair coin has landed on heads five times in a row. A person watching believes that tails is now "due" and is much more likely to appear on the next flip. This mistaken belief is an example of:

Which of the following statements best describes the difference between judgment and decision making?

Which of the following best describes the relationship between multi-attribute choice and multi-cue choice?

Judgments are cognitive assessments; decisions are action commitments.

Homo economicus assumes rational, fully informed decision makers.

Framing effects prove preferences are stable across different descriptions.

Anchoring is the tendency to rely heavily on the first information received.

Hindsight bias may lead to unfair blame assignment after negative outcomes.

Representativeness heuristic often leads people to ignore base rates.

Availability heuristic uses ease of recall to judge probability or frequency.

Satisficing is a compensatory decision strategy.

Take-the-best is a fast-and-frugal heuristic that uses only one reason.

Default bias makes people prefer to change from the status quo.

Attraction effect requires adding an asymmetrically dominated decoy.

More choice always increases motivation and purchase rate.

Coherent arbitrariness means absolute valuations are arbitrary but relative preferences are coherent.

Money illusion confuses nominal value with real purchasing power.

Which are typical examples of framing effects?

Which situations demonstrate anchoring effect?

Which belong to fast-and-frugal heuristics?

Which biases result from representativeness heuristic?

Which are context effects in decision making?

Which statements about reducing hindsight bias are correct?

Which illustrate default/status quo bias?

Which are true about bounded rationality?