A
A quiet, book-loving person is assumed to be a librarian than a gym instructor. What bias is this?
Representativeness Bias
After seeing a shark attack on the news, someone refuses to swim. What bias is this?
Availability Bias
People tend to seek out information that confirms their beliefs. What bias is this?
Confirmation Bias
Purchase an item at $30 solely based on its original price stated as $300. What bias is this?
Anchoring Bias
A sad commercial makes people donate more money. What bias is this?
Emotional Bias
Why do people assume all CEOs are men?
Stereotyping professions (Representativeness Bias)
Why are people more afraid of airplane crashes than car accidents, though car accident are more frequent?
high media coverage of airplane crashes makes them seem more common and dangerous, despite their rarity.
Give an example of confirmation bias in daily life.
When buying a phone with a particular brand in mind, one would only read its positive reviews & ignore negative ones
A hotel shows "5-star” reviews first, followed by 4 stars. How does this affect your perception?
make you perceive the hotel more positively, as that initial high rating sets a reference point
Why do gamblers keep playing after a big loss?
desire to recover their losses overrides rational thinking, leading them to make impulsive decisions.
How does representatives bias impact hiring decisions in companies?
Hiring based on stereotypes (doctors are men, nurses are female)
How can you train yourself to think statistically instead of relying on recent examples that come to mind?
focus on seeking out objective data and information from multiple sources
How to avoid confirmation bias when making important decisions?
Actively seek contradictory evidence
How can you avoid anchoring bias when making big purchases?
Research prices before buying
How can emotional bias lead to bad investment decisions?
feelings like fear or greed cause an investor to make impulsive choices, eg: selling in a panic during a market dip or buying based on excitement rather than objective analysis.