Suppose that you hear someone say, I don't care how many days I am sick; I just care how many days I am well. Which of the following concepts from decision making would be most relevant to this statement?
a. the framing effect
b. the hindsight bias
c. the my-side bias
d. the conjunction fallacy
Question 2
Imagine that your professor is discussing the prevalence of psychological disorders in the general population, and he says, A study conducted in 2012 estimated that about 11 of the population has a psychological disorder at any one time.
If you were to estimate a confidence interval, based on this number11you would be most likely
a. to use the confirmation bias inappropriately.
b. to estimate this range by using the availability heuristic, which would be biased because of recent examples.
c. to rely too heavily on an anchor, and not make large enough adjustments to that anchor.
d. to use decision frames inappropriately.
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Example of calculation of days in accounts receivable (AR).
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...