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Judgement/Decision

Lecture 20& 21 Schwartz & Discussion 4/17

QuestionAnswer
what are heuristics? cognitive strategies that help to simplify what would otherwise be complex judgement tasks
a judgement is considered biased when it deviates from the normative, decision analytic, approach
decision analysis is a set of procedures for making choices when outcomes are uncertain & involves breaking down complex decisions into smaller, more tractable choices which are then combined to reach an overall decision
expected utility theory (EU) is an approach to decision making where a probability that is an objective frequency (based on data) of a possible outcome is multiplied by its utility and the action that leads to the highest expected utility is usually the one that is chosen
subjective expected utility theory (SEU) is an approach to decision making where a probability, that is an subjective belief, of a possible outcome is multiplied by its utility and the action that leads to the highest expected utility is usually the one that is chosen
subjective expected utility based decision analytic procedures.. prescribe how decisions should be made and may be normative but it is not always descriptive
decision analysis can be used to make decisions about diagnosis and treatment, allocation of scarce resources, & to compare the risks and benefits of various actions
what are the limitations to SEU theory required info may not be available, the question of practicality (time consuming), measurement of utility is not easy to quantify
the most important difficulty in applying decision analysis is that people to not always behave as SEU theory claims they should
the availability heuristic is when people estimate frequency or probability by the ease with which instances or associations can be brought to mind
in the availability heuristic sensational events are easier to recall than more common, but mundane, events because they receive more media coverage
because the availability heuristic relies on an individuals personal experiences it can lead to biased judgements when doctors attempt to estimate probabilities in the general population where their personal experience may be atypical
availability can bias probability judgement even when experience" is very recent
probability judgements rise and fall with factors that affect peoples ability to recall relevant instances
in the representativeness heuristic the probability of an event is estimated but the degree to which it fits an existing cognitive stereotype
the predictive value of a positive test result is the proportion of true positives out of all the positives a test produces
the value of a positive test result depends on the population base rate
Bayes formula is used to calculate the relevant probabilities in judgement situations in which prior information is available P(E/H)P(H)/P(E/H)P(H)+P(E/FH)(P(FH)
decision makers base their "strength of association" estimates on relationships they believe ought to exist (that are representative) rather than on true empirical covariation
illusory correlations appear to be responsible for the persistence of many unwarranted beliefs and suggest that ideas may covary even when they are unrelated
the positive testing strategy is when you seek information that is consistent, rather than inconsistent, with one's current hypothesis and in most cases is logically useless
representative thinking can make people insensitive to considerations of sample size
smaller sample sizes are more likely to deviate from the population mean than large ones
the gamblers fallacy is the unwarranted expectation that every sample must represent the population mean
random fluctuation can produce deviations from the true score and are unlikely to be repeated
representative thinking is likely to produce more harm than good because it leads to people ignoring base rates, to make pseudo diagnostic judgements, to misinterpret random events, and to misunderstand statistical regression
human information processing capacity is finite and easily overloaded
because judgement does not necessarily improve with increasing information, people who assign higher that warranted probabilities to their predictions are said to be overconfident
hindsight bias occurs when our present knowledge is allowed to influence our estimates of the likelihood of previous events
the anchoring and adjusting heuristic recommends that probabilities be estimated by first beginning with an "anchored" probability value and then adjusting this value according to the features of the specific case
the initial placement of the "anchor" can have an unduly large influence on final judgements, even when the anchor point in incorrect because of the importance of first impressions
anchoring and adjustment is closely related to availability and representativeness because availability may affect the choice of the anchor point while representativeness may lead people to neglect the base rate altogether focusing entirely on the specific of the case
value-induced biases violate one of the main underpinnings of SEU theory namely that the utility of an outcome is independent of its probability
when a sure thing is stated positively it is preferred to a gamble but when a sure thing is stated in the negative people prefer to take a gamble
preferences are affected by the way an outcome is described
discounting is the tendency to stop searching for the possible causes of a patient's problem after one plausible cause has been found
augmentation is the requirement of especially strong evidence for a diagnosis when some counterindicant is present
errors arise when a counterindicant is allowed to outweigh stronger positive predictors
linear judgement models consist of a set of predictor variables on the one hand and some criterion (the outcome to be predicted) on the other
when linear models are being used to predict judgements, the statistical technique of multiple regression analysis represents a straightforward way to determine the weights to be assigned to the various predictors
linear models may be used to design decision aids
what is the main advantage of linear models? the are of use and their explicit nature
what are the practical problems of decision aids based on linear models? large, reliable databases are not available for many clinical problems & they cannot help a clinician identify previously unrecognized causal variables nor are they capable of suggesting new hypotheses or of explaining their own decisions
linear models fare best when they are used to make predictions for specific problems
linear models are difficult to apply to problems that originate in complex social contexts and do not have neat algorithmic solutions
what is an expert system? a computer program that solves problems and gives advice by making inferences from the available data & need public and private knowledge to behave like human experts
public knowledge includes information found in textbooks: definitions, facts, theories
private knowledge consists of the rules of thumbs the enable experts to make educated guesses when necessary to recognize promising approaches to problems, and to deal effectively with uncertain data
expert systems serve a teaching role because they can explain the basis for their recommendations- by tracing through their reasoning process
expert systems generate hypotheses by a type of backward inference in which current observations are connected to underlying causes & as further information is gathered hypotheses my be altered
expert systems often display a lack of common sense known as the "plateau and cliff" effect
expert systems tend to be slower than human experts and to give considerably more complicated explanations of their thinking processes than humans do
deductive (deterministic) reasoning is logically valid theory > hypothesis > observation > confirmation
inductive (or probabilistic) reasoning is observation > pattern > hypothesis > theory
normative reasoning theories are how one should reason; rules of logic
descriptive reasoning theories are how one actually reasons; biases & heuristics
simulation heuristic is where you base judgments on how easily you can imagine
the conjunction fallacy is believing that a conjunction of events is more likely that a single event & often occurs due to a causal reasoning
framing effects is where the way that information is presented leads to difference decisions
when there are many possible operators that you could apply, at the initial state instead you may want to work backward and instead start at the goal state
Created by: kzegelien2005
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