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Managerial Decision-Making and Cognitive Biases Quiz

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Which cognitive bias involves making decisions based on a vivid memory or recent event rather than statistical data?

Recency bias

Explanation

Preferencing recent events over data.

Which cognitive bias involves favoring information that confirms preexisting beliefs or hypotheses?

Confirmation bias

Explanation

Preferring information that aligns with existing beliefs.

Which cognitive bias involves underestimating the time, cost, or resources required to complete a task?

Planning fallacy

Explanation

Underestimating task requirements.

Which cognitive bias involves attributing success to personal abilities or efforts while attributing failures to external factors or bad luck?

Self-serving bias

Explanation

Claiming personal success, blaming external factors for failures.

Which cognitive bias involves the tendency to believe that events are more predictable after they have occurred?

Hindsight bias

Explanation

Believing past events were more predictable than they were.

Which cognitive bias refers to the tendency to rely on the first piece of information encountered when making decisions?

Anchoring bias

Explanation

Relying on initial information.

In managerial decision-making, the 'sunk cost fallacy' is primarily associated with which cognitive bias?

Loss aversion bias

Explanation

Continuing investment due to past investments, despite low chance of success.

Which cognitive bias leads individuals to overestimate the likelihood of events based on how easily they can imagine or recall them?

Availability heuristic

Explanation

Overestimating based on ease of recall.

In decision-making, what does the term 'framing effect' refer to?

The influence of how information is presented on decision-making

Explanation

How presentation influences decisions.

#10

Which cognitive bias refers to the tendency to prefer immediate rewards over larger rewards that require waiting?

Temporal discounting

Explanation

Preferring immediate rewards over delayed larger rewards.

#11

According to Prospect Theory, individuals tend to be risk-averse when faced with which type of decision?

Decisions framed in terms of potential losses

Explanation

Avoiding decisions with possible losses.

#12

The 'endowment effect' suggests that individuals tend to value what they own more than equivalent objects they do not own. Which cognitive bias does this illustrate?

Loss aversion bias

Explanation

Valuing owned items more than equivalent unowned items.

#13

What is 'loss aversion' as described in behavioral economics?

The tendency to overestimate the impact of losses compared to equivalent gains

Explanation

Overestimating loss impact versus gains.

#14

According to the 'framing effect,' individuals may make different decisions based on how the options are presented. Which cognitive bias does this illustrate?

Framing bias

Explanation

Decisions influenced by presentation.

#15

According to the 'endowment effect,' individuals tend to place a higher value on items they own compared to identical items they do not own. Which cognitive bias does this illustrate?

Loss aversion bias

Explanation

Valuing owned items more than equivalent unowned items.

Managerial Decision-Making and Cognitive Biases Quiz

Which cognitive bias involves making decisions based on a vivid memory or recent event rather than statistical data?

Which cognitive bias involves favoring information that confirms preexisting beliefs or hypotheses?

Which cognitive bias involves underestimating the time, cost, or resources required to complete a task?

Which cognitive bias involves attributing success to personal abilities or efforts while attributing failures to external factors or bad luck?

Which cognitive bias involves the tendency to believe that events are more predictable after they have occurred?

Which cognitive bias refers to the tendency to rely on the first piece of information encountered when making decisions?

In managerial decision-making, the 'sunk cost fallacy' is primarily associated with which cognitive bias?

Which cognitive bias leads individuals to overestimate the likelihood of events based on how easily they can imagine or recall them?

In decision-making, what does the term 'framing effect' refer to?

Which cognitive bias refers to the tendency to prefer immediate rewards over larger rewards that require waiting?

According to Prospect Theory, individuals tend to be risk-averse when faced with which type of decision?

The 'endowment effect' suggests that individuals tend to value what they own more than equivalent objects they do not own. Which cognitive bias does this illustrate?

What is 'loss aversion' as described in behavioral economics?

According to the 'framing effect,' individuals may make different decisions based on how the options are presented. Which cognitive bias does this illustrate?

According to the 'endowment effect,' individuals tend to place a higher value on items they own compared to identical items they do not own. Which cognitive bias does this illustrate?

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