ML 358 Final Exam Review

When choosing life experiences such as vacations, we choose experiences based on our ____________.

_____ is a state reached after attainment of an outcome pertaining to the hedonic impact and experience of the outcome.

Experts who recognize their ignorance rather than act on pretended knowledge are admired for their honesty and integrity

A sequence of two simple decisions considered separately is called ________.

The planning fallacy describes plans and forecasts that are close to best-case scenarios.

Expected utility theory explains that in unknown outcomes, people choose the option with the _________.

Because of ______, we overweight small risks and are willing to pay more than expected value to eliminate them.

Which two factors lead to failure in strategic planning?

In mixed gambles, where both a gain and a loss are possible, loss aversion causes extremely risk-averse choices.

Which source of unethical decision making leads us to discriminate against someone because they are in the minority?

Which of the following bottlenecks in decision making tends to afflict parent companies and their subsidiaries?

In bad choices where a sure loss is compared to a probable larger loss, diminishing sensitivity decreases risk seeking.

Which term describes how people make assumptions based on prior experiences and judgments when facing a new situation?

For some of our most important beliefs, we acquired valid evidence supporting those beliefs over years of experience.

Unusual events are easier than normal events to undo in our imaginations and, thus, cause more regret.

Denominator neglect explains how people pay too much attention to numerators and ignore denominators.

Which bias explains why people exaggerate the impact of the CEO and leadership style on firm success or failure?

Which approach designs the roles, processes, systems, and behaviors the firm should use to make decisions?

_______ is served by broader and more comprehensive frames (as in joint evaluation) resulting in superior decisions.

The moral institutions that come to your mind in different situations are internally consistent.

When asked to evaluate the same information twice, humans are frequently consistent in their judgments.

Statistical predictions made by algorithms are more accurate than clinical predictions in __________.

People tend to be risk averse in the domain of gains and risk seeking in the domain of losses.

Prospect theory does not account for _______.

What is the tendency for people to see themselves as more impartial, more insightful, and less biased than others?

Which bias explains why people tend to perceive events as being more predictable than they actually were?

Which term describes how people make mistakes about how much they will like something in the future?

Experts may not know the limits of their expertise due to ___________.

People tend to have more regret when an outcome is produced by ______ than when the same outcome is produced by _____

The presence of inappropriate self-interest biases the emotional importance we place on information.