DISCUSSION 4.2 - DISCUSSION 4.2 Are People Rational? Post a...

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DISCUSSION 4.2 Are People Rational? Post a response to the following discussion issue. Please title your thread "Are People Rational?/[Your Name]." In your thread, comment on the following question: Much has been made of the fact that people don't consistently act with scientific rationality. What is meant by rationality ? Consider the three "systematic mistakes" discussed in your text. What are the costs of making those "systematic mistakes"? Is it possible to act "irrationally," or is rationality defined by the individual's approach to decision making. Rationality is a state of a person who is thinking coherent according to their level of experience or knowledge about a given situation and they make a decision that is intended to produce an outcome that they desire based on the need, cost benefit and evaluation. People make these systematic mistakes all the time. Take a person who is overconfident, they tend to overestimate their knowledge; they do not implement proper risk controls or conduct proper risk assessments, as they tend to think they can control any event. When they make this systematic mistake, they normally make a decision that effects someone’s life or moreover, there own. People who give too much weight to small number of vivid observations tend to stereotype. They loose site of the big picture. They tend to believe that one source of data is always correct and there is no other answer. When this happens, they make decisions that are not in their best interest and could end up losing money in the end. People who are reluctant to change their mind tend to be reluctant to accept the truth because it requires them to acknowledge responsibility for something they have experience in their lives. They two like the overconfident risk takers above and tend not wanting to evaluate the situation thoroughly. When someone does this, they do not see the big picture and results end up not being what they were intended. I think it is possible for a person’s behavior when it comes to making decisions, preferences, beliefs, and expectations to be rational and irrational depending on the given situation. I think that most people will act rationally however there are a large number that are in the middle (good enough) or act irrationally towards most situations. Jimmy Author: Tiffany Wasson Posted date: Wednesday, April 7, 2010 11:12:04 PM EDT Last modified date: Wednesday, April 7, 2010 11:12:04 PM EDT Total views: 2 Your views: 1 To me rationality is making a sound decision by looking at the decision from all sides. Irrational people make quick decisions with out looking at all of the consequences. One could look at over eating as an example. "My eyes where bigger
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DISCUSSION 4.2 - DISCUSSION 4.2 Are People Rational? Post a...

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