Chapter 8.2, Problem 2MU

a.

Summary Introduction

Introduction:

Heuristics refer to the mental shortcuts that are used to reduce the amount of thinking required for making decisions. Use of heuristics occur unconsciously. It is helpful in making quick decisions at many situations. Four major heuristics that influence decision making are:

• Relative comparisons – It includes anchoring and framing.
• Availability
• Representativeness
• Affective

People prefer to have more choices, but when the number of choices increases, the ability to make decisions decreases and the satisfaction from it also decreases.

b.

Summary Introduction

Introduction:

Heuristics refer to the mental shortcuts that are used to reduce the amount of thinking required for making decisions. Use of heuristics occur unconsciously. It is helpful in making quick decisions at many situations. Four major heuristics that influence decision making are:

• Relative comparisons – It includes anchoring and framing.
• Availability
• Representativeness
• Affective

People prefer to have more choices, but when the number of choices increases, the ability to make decisions decreases and the satisfaction from it also decreases.

c.

Summary Introduction

Introduction:

Heuristics refer to the mental shortcuts that are used to reduce the amount of thinking required for making decisions. Use of heuristics occur unconsciously. It is helpful in making quick decisions at many situations. Four major heuristics that influence decision making are:

• Relative comparisons – It includes anchoring and framing.
• Availability
• Representativeness
• Affective

People prefer to have more choices, but when the number of choices increases, the ability to make decisions decreases and the satisfaction from it also decreases.

d.

Summary Introduction

Introduction:

Heuristics refer to the mental shortcuts that are used to reduce the amount of thinking required for making decisions. Use of heuristics occur unconsciously. It is helpful in making quick decisions at many situations. Four major heuristics that influence decision making are:

• Relative comparisons – It includes anchoring and framing.
• Availability
• Representativeness
• Affective

People prefer to have more choices, but when the number of choices increases, the ability to make decisions decreases and the satisfaction from it also decreases.

e.

Summary Introduction

Introduction:

Heuristics refer to the mental shortcuts that are used to reduce the amount of thinking required for making decisions. Use of heuristics occur unconsciously. It is helpful in making quick decisions at many situations. Four major heuristics that influence decision making are:

• Relative comparisons – It includes anchoring and framing.
• Availability
• Representativeness
• Affective

People prefer to have more choices, but when the number of choices increases, the ability to make decisions decreases and the satisfaction from it also decreases.