Unit Four Activity

Decision Concepts

Question 1

Activity 1 : In this activity , the decision concept demonstrated is that of the Pygmalion Effect . One characteristic of this theory is defining a condition based on a false premise . Based on the respondents ' answers to the scenarios presented to them , it was found out that they have biases against the Soviets not because of their policies but because of how their race

seemed to the Americans

Activity 2 : For the second activity , this was clearly a demonstration of the calibration theory , wherein the accuracy of the

respondents ' answers were measured against the actual number of correct responses

Activity 3 : In the third activity , the Pygmalion Effect was again demonstrated . Majority of the respondents chose E and 4 in what was clearly an expectation and fulfillment scenario . They chose E and 4 because both satisfied the given conditions

Activity 4 : The fourth activity demonstrates the Investment Trap theory Majority of the second group , without knowing about the amount of investment , chose not to complete the project in light of a competitor 's more modern plane . The second group 's ignorance of the amount led them to decide against continuing the project

Question 2

These decision concepts imply that people make decisions based on factors known or unknown to them . Some people also make decisions based on preconceived ideas and notions about certain situations . These concepts also imply that our ways of making decisions are sometimes affected by biases and overconfidence

Question 3

Although overconfidence can lead to calibration errors , and the trap theory could provide flaws in important business decisions , I believe it 's the Pygmalion Effect that could have a potentially fatal result For instance , during the period where slavery was a way of life for the African-American people , an all-white jury judging the case of a black slave would already have biases against the accused . These preconceived notions were there because it was part of society . The jury would have formed a decision even if the hearing had not started for the simple reason that the accused is black...