17.

The questions and responses on this exam have been randomized by a computer. Let's say there are three questions with correct responses in the following order: A, B, then C. A student who doesn't understand how randomness works might think that the next question's response must be D. This illustrates ____.

gambler's fallacy

framing effects

availability

illusory correlation

Question at position 18

We tend to prefer to buy a car that costs $15,000 with a $3,000 cash rebate rather than a car that costs$10,000 plus $2,000 in various fees. This occurs because _____ influence our reasoning and cause us to see the same underlying information in different ways.

framing effects

availability

illusory correlation

representativeness

Question at position 19

A heuristic is

the part of the frontal lobe that is primarily responsible for reasoning and decision making.

a mistake made in reasoning and decision making when trying to use correct procedures.

a strategy that guarantees correct reasoning and decision making.

a simplified approach to reasoning and decision making that works most of the time.

Question at position 20

We tend to be more worried of flying in a plane than we are of driving in a car, even though car accidents kill hundreds of times more people than airplane accidents. Our concern is in part due to the large amount of news coverage of every airplane crash, even though they are quite rare. This situation is most closely associated with ____.

the availability heuristic

the representativeness heuristic

framing effects

gambler's fallacy

Question at position 21

Laura and Pedro went shopping for a new car. They visited several dealerships and made a list of eight cars that were within their price range. When they got home, they first considered which of the cars were big enough for their family and removed three that were too small. Next, they removed two cars that had low crash-test ratings. Finally, they decided to buy the car that had the highest fuel efficiency of the remaining options. This decision making process is an example of

satisficing.

elimination by aspects.

economic utility theory.

availability heuristic.