What is the term for the 'rule of thumb' type of bias in decision-making ?
MH SET - 2019, SET Exam - 2019,
Answer: D
A rule-of-thumb shortcut in decision-making is a heuristic.
Heuristics are simple judgemental shortcuts that people use to make decisions quickly with limited information, such as the availability heuristic (judging likelihood by how easily examples come to mind) or the representativeness heuristic. They save effort but can produce systematic errors, which is why they are discussed among decision biases.
Framing bias is being swayed by the way a problem is presented, such as a 90 per cent survival rate versus a 10 per cent death rate. Hindsight bias is believing, after the event, that the outcome was predictable. Over-confidence bias is overrating the accuracy of one's own judgement. None of these is the rule-of-thumb shortcut itself.
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