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Action Based Decision Making Presentation

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Decision Making - 2 Chapter 14 General Types of Models ◼ Normative models – Models that describe what people should do ◼ Descriptive models – Models that describe what people actually do Making Choices ◼ Compensatory models – Additive model – Additive-difference model ◼ Noncompensatory models – Elimination by aspects – Conjunctive model Making Choices ◼ Selecting a strategy to use – With a lot of choices, people tend to use elimination-by-aspects strategy – With fewer alternatives, people tend to additive strategy Estimating Probabilities Making decisions under conditions of uncertainty ◼ Availability heuristic ◼ – Estimate the ease with which examples can be recalled ◼ Representativeness heuristic – Extent to which an event is typical of a larger class of events Combining Probabilities and Values ◼ Necessary to assess both the probability of events and the consequences of various actions when making decisions – Must assign values in risky decision making – Combine the values of the different outcomes with the probabilities that they will occur Combining Probabilities and Values ◼ Expected Value – The average value, as determined by combining the value of events with their probability of occurrence – Provides a standard of reference against which psychologists can compare how people make decisions Expected Value Procedures: gambling situations in which they inform people about the probabilities (of winni ...
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Tags: decision making Action Based Decision Making making choices Estimating Probabilities Probabilities and Values

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