{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

3 - Compute the decision with perfect knowledge you would...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Compute the decision with perfect knowledge - you would pick die C, if 1 or 2 was going to come up… etc 30$ for sure, or a gamble in which you toss a coin that you can win 100 or 0 - how much should you pay to find out which side of the coin will come up .5(100) + .5(30) = 65 You will choose the gamble if you know it will be heads, you will choose the sure thing if you know it will be tails 65 – 50 = 15 Heuristics in probability judgments - availability heuristic – people asses the probability of an event based on the degree to which instances are readily available o Probability of nuclear disaster after the tsunami in Japan, people will give high probabilities (if you ask the question the day before, the probabilities will be far lower) o If you can think of it, it must be important o Vivid associations – we focus on information that is vivid, which affects our logic and probability Save the children: Donation request - Anchoring heuristic – people start with an anchor then adjust up or down, but
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern