Lesson 7 of 8 · All lessons in this module
- Cognitive errors versus emotional biasesVideo lesson
- Belief perseverance I: conservatism and confirmation
- Belief perseverance II: representativeness, illusion of control and hindsight
- Information-processing biases: anchoring, mental accounting, framing and availabilityVideo lesson
- Emotional biases I: loss aversion and overconfidenceVideo lesson
- Emotional biases II: self-control, status quo, endowment and regret aversion
- Integrated case: a multi-bias file with 'least likely' and 'not shown' items
- Behavioural finance and market anomalies
Lesson 7 of 8 · 14 min
Integrated case: a multi-bias file with 'least likely' and 'not shown' items
Item sets pack several look-alike biases into one story and then ask which fits, which consequence does not follow, or which bias is not shown: the answer comes from a fixed route, not from a general impression.
In short
- An item set is one vignette and several questions. Read the vignette once, marking each statement (what was said) and each observation (what the numbers show).
- Route for every question: wording → bias → that bias's textbook consequences → matching remedy.
- 'Least likely a consequence' and 'least supports' are solved by elimination: two options belong to the bias, one does not.
- 'Which bias is not shown' means checking each named bias against the text; the one with no evidence is the answer.
- Several biases can fit one story. Choose by what the person does (filters evidence, holds losers, rewrites a forecast), and use any rules in the vignette as context.
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