CCT324H5 Chapter Notes - Chapter 12: Nominal Group Technique, Hindsight Bias, Confirmation Bias
14 Dec 2016
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Document Summary
Decision: the choice made from two or more alternatives. Rational: choices that are consistent and value-maximizing within specified constraints. Rational decision-making model: define the problem, identify the criteria, allocate weights to the criteria, develop alternatives, evaluate the alternatives, select the best alternative. Complete information: problem is clear and unambiguous. Known options: the decision maker is able to identify all relevant options in an unbiased manner. Chooses the option with the highest utility. Bounded rationality: limitations on ability to interpret/process/ act on information. Satisficing: identifying solution that is good enough + first acceptable solution not the optimal one. Intuition: non-conscious process created from distilled experience resulting in a quick decision. Overconfidence bias: believing too much in self especially when out of expertise. Anchoring bias: using early, first received information as basis for judgments. Confirmation bias: selecting/using only facts that support out decision. Availability bias: emphasize information that is already at hand recent + vivid.
