What is decision Making Bias (Heuristic).pptx

Decision Making Bias

1. DECISION MAKING BIAS (HEURISTIC)

2. Decision Making Whether it is the decision to go to class or the decision of what your major will be, everyday life is filled with decisions. There are no guidelines or set of rules that tell us exactly how to make a decision. However, people use heuristics to aid in their decision making.

3. WHAT IS HEURISTIC ? It is derived from the Greek word HEURISKEIN which means “to discover”. It refers to experience based techniques for problem solving . In more precise terms, heuristics are strategies using readily accessible, though loosely applicable, information to control  problem solving  in human beings and machines .

4. WHAT IS HEURISTIC ? Heuristics are strategies that help to produce correct solutions. Heuristics don’t always produce a correct answer, sometimes they are the reasons why people make the wrong decisions.

5. Examples 1.Rule of thumb 2.Educated guess 3.Intuitive judgments 4.Common sense 5.Trial and error

6. Types of Heuristics The Representativeness Heuristics Judgment under uncertainty The Availability Heuristics Mental shortcuts The Anchoring and Adjustment Heuristics Initial adjustment made on previous knowledge

7. CONCLUSION/RESULTS All heuristics are quite effective usually but lead to predictable systematic error and biases. Understanding biases might decrease their effect.

8. THANKS.