Reasoning and Decision Making - Lesson Summary
The key to solving the Wason four-card problem is to be aware of the falsification principle.
The concept of Pragmatic Reasoning Schemas refer to a way of thinking about cause and effect in the world that is learned as part of experiencing everyday life.
In inductive reasoning premises are based on observations of one or more specific cases and we generalize from these cases to get a more general conclusion.
In inductive reasoning conclusions are suggested with varying degrees of certainty but do not definitely follow from premises.
The availability heuristic states that events that are more easily remembered are judged as being more probable, than events that are less easily remembered.
The representativeness heuristic is based on the idea that people often make judgments based on how much one event resembles the other event.
The base rate is the relative proportion of different classes in the population.
The Confirmation Bias refers to our tendency to selectively look for information that conforms to our hypothesis and to overlook information that argues against it.
The Utility Approach is based on the assumption that people are basically rational if they have all the relevant information, they will make a decision that results in the maximum expected utility.
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