In choices that involve uncertainty, our judgments are affected not only by the framing of the choice in terms of the level risk, but also by the framing of the choice in terms of gains or losses.Group of answer choicesTrueFalse

In the material on Framing, you were invited to respond totwo lotteries. They are replicated here.Which of the following biases and errors could explain why somerespondents to these two lotteries may apparently “flip their preferences”? Please select all that apply.1 point Risk aversion over gains Loss Aversion Risk seeking overlosses Mental Accounting Endowment Effect

Tick all of the following statements that you think are true (remember that you lose points by ticking a  statement that is false)Group of answer choicesIn the context of uncertainty, ambiguity means not knowing which option to chooseA bad decision can have a good outcome.You can give a meaningful probability to the outcome of an uncertain event even when you have no frequency data (observations/trials) to base it on.A good outcome implies a good decision.The Frame is one of the elements of the Decision Basis.On average, actual O&G project costs, completion times and productivity are similar to predictions.The decision-making methodology can account for qualitative objectivesChoices (or Alternatives) is one of the elements of the Decision Basis.

Which bias occurs when individuals place too much importance on the first piece of information they receive when making decisions?Choices:- Confirmation bias Anchoring bias Overconfidence bias Framing bias

In decision making risk is measured by :

Why do consumers have to make decisions?Group of answer choicesbecause we want to minimize our risks when we make choicesbecause we want to maximize our investmentbecause we can't have everythingbecause we make bad decisions more often than goodNext