Problem Solving And Decision Making

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Problem Solving And Decision Making. Chapter 8. Definition. Problem solving refers to active efforts to discover what must be done to achieve a goal that is not readily attainable. Types of Problems (Greeno). Problems of Inducing Structure Problems of Arrangement Problems of Transformation.

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Problem Solving And Decision Making

Chapter 8

Definition
• Problem solving refers to active efforts to discover what must be done to achieve a goal that is not readily attainable.
Types of Problems (Greeno)
• Problems of Inducing Structure
• Problems of Arrangement
• Problems of Transformation
Approaches to Problem Solving
• Trial & Error
• Heuristics
• Forming Subgoals (Tower of Hanoi)
• Working Backwards (Water Lilies)
• Using Analogies (Tumor)
• Reenvisioning the Problem
Barriers to Effective Problem Solving
• Irrelevant (Distracting) Information
• Functional Fixedness (Screw Driver)
• Mental Set
• Unnecessary Constraints
Decision Making
• Two types of decisions
• Making choices (selecting among alternatives)
• Taking chances (deciding amidst uncertainty)
Selecting Among Alternatives
• Strategies
• Subtractive (Elimination of Aspects)
Making “Risky” Decisions
• Risky Decisions (Tversky & Kahneman)
• Factors Influencing Risky Decisions
• Using Probabilities
• Expected Value
• Subjective Utility
• Factors that Affect Probability Estimates
• Heuristics
• Availability
• Representativeness
• Ignoring Base Rates
• The Conjunction Fallacy
• Alternative Outcomes Effect
• Framing the Question
Classic View

Irrational

Prone to errors & mistakes

Mentally limited

Evolutionary View

Rational

Fast and Frugal heuristics work

Humans as Decision Makers

Dual Process Theories

Intuitive Thinking

Rational Thinking

\$20

\$1

Reducing Regret after Decisions

Told next person

and interesting

Cognitive Dissonance Theory

much they

enjoyed experiment

Boring

Told next person

and interesting

Making Decisions in Groups
• Group Polarization
• Groupthink

Risky

Neutral

Cautious

Group Polarization

Group Polarization- tendency to shift toward more extreme positions after group discussion

Groupthink
• Groupthink- syndrome of bad decision-making

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