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CARMEL RAJ
Introduction
What is Heuristics
Cognitive Bias
Concluding Remarks
What is Heuristics
What is Heuristic?
Heuristic principles are simple decision rules through which individuals make
judgments. Instead of using all available and relevant information, individuals
make inferences based upon "adequate" instead of "optimum" information.
One may ask "why" individuals rely upon heuristic principles for decision making
when more complete accounts would be preferred. A simple, pragmatic reason for our reliance upon
heuristic principles suggests we utilize them for reasons of economy .
Although
It is important
heuristics are
to distinguish
indeed helpful
Cognitive biases Humans in problem
cognitive biases
are flaws in from other
judgement.
develop solving, under
forms of bias,
cognitive conditions of
They are either such as cultural
complexity and
caused by biases for uncertainty,
bias,
memory, or organizational
statistical many they are known
bias, or bias
to produce
errors. reasons. systematic
that results
from ones own
errors in
self-interest.
judgement.
The Heuristics and Biases Tradition
The literature consistently shows that people use a subsystem of intuitive mental routines
to cope with the complexity inherent in most decisions.
These simplifying heuristic mechanisms, although prone to bias and errors, are
nonetheless essential in directing our judgement easily go unchecked.
People often tend to be overly confident about the infallibility of their judgements
and the accuracy of their judgements and the accuracy of their estimations. The
consequences can range from annoyance to severe repercussions.
However, tests and disciplines can be built into our thought processes to uncover
errors in thinking before they become errors in judgement.
Algorithm and Heuristics
Concluding Remarks