New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Test #2 Study Guide

by: Emily Lowe

Test #2 Study Guide PSYC 2014

Emily Lowe
GPA 3.356

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Here is the completely filled out study guide that Dopkins posted.
Cognitive Psychology
Dopkins, S
Study Guide
50 ?




Popular in Cognitive Psychology

Popular in Psychlogy

This 20 page Study Guide was uploaded by Emily Lowe on Sunday December 6, 2015. The Study Guide belongs to PSYC 2014 at George Washington University taught by Dopkins, S in Fall 2015. Since its upload, it has received 181 views. For similar materials see Cognitive Psychology in Psychlogy at George Washington University.


Reviews for Test #2 Study Guide


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 12/06/15
Friday, December 4, 2015 Cognitive Psychology Test #2 Study Guide - Knowledge What is the difference between the way concepts and class inclusion relationships • are represented according to the hierarchical network theory? - This theory stems from Quillian’s Network Theory, which says that connections between words, concepts, images, facts can be made between essentially anything - Hierarchical Network Theory says that things can be characterized in many different ways • Ex: a man - Entity, object, being, animal, mammal, primate, human, jerk, etc Node-Link Structure says that class inclusion • relations are represented explicitly - Concepts are represented as nodes (Bird) - Class Inclusions are represented as links (Canary ——> Bird) • How does the hierarchical network theory explain the semantic distance effect? - People process a canary is a bird faster than they process a canary is an animal because, according to this theory, for the first one they only need to go through one class inclusion (canary—>bird) and one node, versus the second one which they need to go through 2 class inclusions and 2 nodes (canary—> bird —> animal). • How do a category membership statement and a category property statement differ? - 1 Friday, December 4, 2015 • If the hierarchical network model did not have an efficient filing system, would the semantic distance effect occur for category membership statements? - • If the hierarchical network model did not have an efficient filing system, would the semantic distance effect occur for category property statements? - • What is the typicality effect? - Typicality Effect: in network theory, the difference in time it takes to answer questions about ordinary instances of a category versus unusual instances of a category • In other words, you will process something faster if it a more unusual example of a category • Ex: “A canary is a bird” FASTER THAN “An ostrich is a bird” • Why do network theories of semantic memory have difficulty explaining the typicality effect? - The typicality effect works against this because in the network theory, you would process something in the same amount of time that had the same number of class inclusions • Ex: “A canary is a bird” should be processed in the same amount of time as “an ostrich is a bird” because both a canary and ostrich would be one link (class inclusion) from bird. Because it does take longer to think about the ostrich sentence, the network theory is proved wrong. • How does the feature comparison model explain the typicality effect? - This model says that you organize something as all of its features • Ex: When you say bird, all the things about a bird turn on in your mind - skin, can move, eats, breathes, has wings, has feathers, lays eggs, can fly, nests in tree, etc • This supports the typicality effect because an ostrich has fewer features common to bird than does a canary and so it will take you longer to process the statement that is less “usual” 2 Friday, December 4, 2015 - Ex: CANARY - skin, can move, eats, breathes, has wings, has feathers, lays eggs, can fly, nests in tree, etc • OSTRICH - skin, can move, eats, breathes, has wings, has feathers, lays eggs • According to the feature comparison model, can a category membership statement be verified in stage 1? When does verifying a category membership statement require stage 1 and stage 2? - Stage 1: rough comparison of all features • Ex: canary falls under this - Stage 2: more careful comparison of defining features • Ex: ostrich falls under this - According to the FCM, a category membership statement can be verified in stage 1 - A category membership statement requires stage 1 and stage 2 when one needs to think harder about whether or not a specific member is in that category by taking a closer look at the defining features. • Explain the role of defining and characteristic features in the feature comparison model’s account of the verification of typical and atypical category members. - Defining Features: necessary and sufficient characteristics of the category • Ex: BIRD - these features (has wings, lays eggs, covered in feathers) are sufficient for us to be able to say that the animal is a bird when they have these things - Characteristic Features: commonly-occurring characteristics of the category • Ex: BIRD - these features (nests in a tree) are things that explain a characteristic of a bird but not necessary for all birds to have • What is the difference between the way class inclusion relations are represented in the hierarchical network model and the feature comparison model? - Class inclusions in the hierarchical network model are represented as equal links from one concept to the next (ex: bird to canary or to ostrich or to finch are all equal) 3 Friday, December 4, 2015 - Class inclusions in the feature comparison model are represented as unequal links based on the “usual-ness” of the items and its characteristics (ex: bird to canary is shorter than the class inclusion from bird to ostrich) • What are some good and bad things about schemas? - Schema: sketchy, loose, summary of knowledge about a particular topic - GOOD THINGS: • More available and lead to quicker processing Allow you to understand you’re surroundings faster and more efficiently • • Fill in missing information • Can be modified based on different variables - BAD THINGS: • Allow you to overlook details that could have been important because you assumed something different Leads to stereotyping • Can sway eyewitness testimonies/recalling events based on what you believe • should have occurred based on the situation/event (explained further in next question) • How do schemas influence our memory for an event? - They cause you to fill in info you may not have actually seen but assume would have been there based on the situation/event • Ex: believing you saw a shattered windshield in a car crash (because that is a typical thought of car accidents) when, in reality, the windshield did not shatter/ break at all - Imagery • Why in the Brooks’ study is the verbal task more difficult with the oral response and the visual task more difficult with the pointing response? - Brooks’ Study: DUAL TASK METHOD - subjects asked to do two tasks simultaneously to see if imagery and perception overlap 4 Friday, December 4, 2015 • Verbal Task: S heard a sentence and had to mentally repeat it to themselves and identify each word as being a noun or not by responding yes or no. Some S had to verbally respond yes or no and another group had to point to a Y or a N to indicate their answer. • Visual Task: S had to imagine the outline of a capital F, and then scan the mental image clockwise from the lower left corner. Their task was to indicate if the point of intersecting lines was at the top or bottom edge of the letter. If there was a point, a yes was required. If the point of lines was somewhere in the middle, a no response was required. Some Ss had to verbally respond yes or no and another group had to point to a Y or a N to indicate their answer. • Findings: when the task required both verbal tasks/responses or both visual tasks/responses, the response times were higher than if the task required a verbal task/visual response or a visual task/verbal response. - So, we conclude this occurs because the act of scanning an image uses some of the same cognitive resources as scanning a picture. Also, we conclude that the coding of images is more similar to the coding of pictures than it is to the coding of a string of words. This means that under specific conditions, images have an analog code. • In other words - The verbal task with the verbal response is harder because it is relying on the same cognitive resources, whereas the verbal task with a pointing response does not. What would we have concluded in the Brooks study if the visual and verbal tasks • had both been more difficult with the oral response? - We would have concluded that these two processes of verbal and visual processing do not require the same cognitive resources because verbal and visual response times would not have differed for each task type. Response time increases as a function of what in the arrow-dot experiments? • - Response times increase as the distance the arrow is from the dot increases. • ****How does the mental imagery that Shepard studied differ from imagination? - • How does the linear function of Shepard & Metzler argue for mental rotation? 5 Friday, December 4, 2015 - As the angle of rotation increases, the time it takes the subject to answer increases. This argues for mental rotation because it is taking the subject longer to come up with an answer the farther the image is rotated from its original state. • The linear function of Shepard & Metzler implies that what is constant? - It implies that the speed at which your mind conducts mental rotation is constant. In other words, the speed at which you are rotating the object cannot be altered. • What is the relationship between the brain areas involved in imagery and perception? - Research has supported the idea that the brain areas involved are the same in both processes. This is shown by the fact that the same areas of the brain are involved when the subject imagines a certain letter as when they look at a certain letter. • What does this relationship imply about imagery? - This implies that imagery is similar to looking at a real life picture, or that someone is actually somewhat creating an image in their mind in the same way you would see that same image in real life. • What does Chambers & Reisberg imply is remembered regarding an ambiguous figure? - This study shows that people remember the features that enforce what they are told to see versus those that would act against the object they think it is • Ex: if you are told an ambiguous drawing of either a duck or bunny is a duck, you will remember the features that support the idea that it is a duck versus those features that say it is a bunny - In other words, it implies people remember the general image but not the full image • According to the dual coding hypothesis, why are concrete words remembered better than abstract words? - Dual Coding Hypothesis: • LTM uses a verbal and pictorial coding system • Memory is better if items are encoded in both systems • Imagery facilitates encoding in the pictorial system 6 Friday, December 4, 2015 - According to this hypothesis, concrete words are remembered better than abstract words because they can associate an image with the word rather than a concept with the word. This way, each word has a verbal aspect (speaking the word aloud) and a pictorial aspect (imagining the picture of what that word represents). • What are the functions of imagery in the method of loci? - Method of Loci • At study, use imagery to link each to-be-remembered item with one locus within a spatial structure • At recall, visit loci in mind; use each locus to cue retrieval of item linked to it - Imagery allows one to put these items on a visual field within the mind • Why does one use well-known places in the method of loci? - You use well-known places because you need to know the location well enough so that you can move about the location and have a firm image of its details. Most importantly, it is an location that is available from your LTM. • ***What are two ways that the method of loci helps one to remember a set of items? - - Language • Distinguish semantics from syntax. - Semantics: meanings of individual words • The MOST important aspect of language - Syntax: rules of how to arrange words into phrases and sentences • Distinguish pragmatics from semantics. - Pragmatics: social rules that govern language use • Limits on what can be spoken about, how to speak, and the listener’s expectations about how the information will be presented • Includes nonspeech elements like hand gestures - Semantics: literally just the meanings of individual words 7 Friday, December 4, 2015 • How does a declaration differ from a commissive? - Declaration: the speaker’s utterance performs some action • Ex: you’re fired - Commissive: the speaker commits him/herself to some later action • Ex: I am going to the gym today • Ex: I am going to break your neck if you don’t close the window How does an assertive differ from an expressive? • - Assertive: the speaker assets his/her belief in some proposition • Ex: It is raining - Expressive: the speaker describes his/her psychological state • Ex: I am very sad that the window is open • What does a speaker do differently to make different vowels? - When saying a vowel, the vocal cords undergo periodic vibration and the frequencies of each vowel differ and so these two things are alternating to make each of the various vowel sounds. Generating continuous bands of frequencies • • What does a speaker do differently to make different consonants? - There are three kinds of consonants, and they are all articulated using the tongue and lips Stop consonants: start with bursts of noise (B, P, D, T, G, K) • • Fricative Consonants: involve turbulent airflow created the partial construction of vocal tract • Nasal Consonants: blocking output of sound through mouth with lips/tongue (M, N) • ****How do consonants and vowels differ acoustically? - Vowels have higher frequencies as compared to consonants. • How do voiced and unvoiced consonants differ? 8 Friday, December 4, 2015 - An unvoiced sound has no vibration of the vocal cords while voiced consonants do have vibration of the vocal cords. • How do vowels differ acoustically? - Each vowel has a different frequency. For example, “I” has a higher frequency than a “U”. • Why does it make sense, given the functions served by nearby cortical areas, that damage in Brocas’ area produces the deficits of Brocas’ aphasia? - Broca’s Aphasia: (same as Nonfluent Aphasia) • Symptoms: patient speaks with difficulty, few function words (auxiliary verbs, prepositions, etc…) • Damage: Broca’s Area - frontal lobe, near auditory cortex and motor cortex for mouth and face - The nearby areas (Broca’s Area in the frontal lobe) functions are involved in controlling speech and syntax. The symptoms of this disorder make sense because syntax can be analogized with the mouth and the tongue, and is therefore the apparatus controlling speech. You use this syntax ‘apparatus’ to make words and sentences. • Why does it make sense, given the functions served by nearby cortical areas, that damage in Wernicke’s area produces the deficits of Wernicke’s aphasia? - Wernicke’s Aphasia • Symptoms: patient speaks fluently but with little meaning - Basically just talking without really saying anything or conveying any meaning • Damage: Wernicke’s Area (in the temporal lobe), between the auditory cortex and angular gyrus - Wernicke’s Area: links meaning with the sound needed to convey the meaning/ word - semantics - Angular Gyrus: involved in maintaining what the types of words are - There has been lots of research indicating that Wernicke’s Area is involved in word meaning, or semantics. Patients with this disorder are able to use syntax (construct proper sentences), but are unable to understand the meanings of 9 Friday, December 4, 2015 words to construct sentences which convey any meaning. This makes sense because Wernicke’s Area is between the auditory cortex and the angular gyrus. The auditory cortex is involved in hearing, and when damaged, it makes sense that individuals would have a hard time producing sentences with meaning because they struggle processing what they are hearing as they speak. Damage near the angular gyrus makes sense because this area is involved in remembering what the various types of words are and so, an individual will struggle to produce a statement that uses words with the correct meanings are. • What role does the right hemisphere play in a person with language lateralized on the left side? - An individuals cerebral cortex houses many of the various higher functions a human uses, such as the occipital lobe, the temporal lobe, and the other senses. Language has been found to be processed in the center of the cerebral cortex, essentially where all of the lobes controlling each sense come together. So, the right hemisphere is important because it houses some of these lobes in charge of the senses, and therefore, helps to integrate input in the language processing area. • How does speech discrimination change in early childhood? - Speech Discrimination: without really knowing how to speak or understand the language, an infant is able to discriminate their language between another language - By the end of an infant’s first year, they are able to discriminate between their language and another language. In other words, if an American infant hears English and Spanish, they will be able to recognize the English sounds over the Spanish ones. This ability significantly decreases after the first year of life. Why do children make regularization errors? • - Regularization: errors made by children through the over-application of a language rule • Ex: making all words past tense by adding -ed, such as “maked” - Children make these errors because initially, they learn the words as individual cases, such as “I made,” but once they learn the rule to add -ed at the end of a word for past tense, they begin to forget those individual cases and just apply it 10 Friday, December 4, 2015 to everything, such as “I maked.” They will then learn the exceptions eventually and improve again. • What does Williams syndrome tell us about the relationship between language and intelligence? - Williams Syndrome • Defective gene on chromosome 7 • IQ between 50 and 75 • Normal grammatical ability • Talkative and friendly • Issues with intelligence but language is in tact - This syndrome tells us that the relationship between intelligence and language is not one that is positive or negatively correlated. An individual can have one without the other, or they can have both, or they can have neither. • How does Smith et al’s experiment refute Watson’s position re language and thought? - Watson’s Position: • Thought carried out in terms of language • Thought is subvocal speech • When you think, you are just talking to yourself • He believed speech is a behavior and, because he felt there wasn't anything but behavior, thinking is essentially just speaking very quietly - Smith et al Experiment • Smith injected himself with curare, which paralyzes the muscles - You are essentially frozen • Asked himself if he continued to think and he did • This refuted Watson’s position 11 Friday, December 4, 2015 - Smith’s experiment refuted Watson’s position because it showed that one can still think even if they are paralyzed and therefore, thought could not be classified as a speech or physical behavior. • What was the crucial role of focal colors in Rosch’s experiment? - Rosch’s Experiment • Dani, and Indonesian subpopulation, have only two color words - corresponding to our dark and light - Dani Ss learned to associate clan names with color • Ex: using “Fikuf” (a clan name) to identify a focal red or an unsaturated red (like a pink) - They were then asked to say which clan each color represented - Focal Color: best instance of a basic color - The role of this was to show that a westernized individual will be equally able to accurately identify the correct clan when associated with a focal color as someone who does not define that color with a word. What does Rosch’s experiment teach us about the Sapir-Whorf hypothesis? • - Sapir-Whorf Hypothesis: the language that you speak shapes your thinking about the world • In other words, thinking uses the words of speaking in order to understand the world - This hypothesis predicts that, in terms of the Rosch Experiment, the Dani don’t have the word “red” so they won’t do any better with a good red (focal red) than with a bad red (pink) - Rosch's experiment teaches us that the Sapir-Whorf hypothesis is not entirely correct because if someone is required to make distinctions they may not have explicitly in their language, they will develop terms/ways to deal with those distinctions. • ****What does the pattern of color words across cultures say about the Sapir- Whorf hypothesis? - 12 Friday, December 4, 2015 - Problem Solving • How does changing the representation of the mutilated checkerboard problem help solve it? - Mutilated Checkerboard Problem: is there a way to arrange 31 dominoes so that each checkerboard swear is covered by a domino? • Answer: there is not because there is an unequal number of red and black squares - Instead of trying to solve the problem by arranging the dominoes on the board (physically or mentally), one can consider the problem in terms of logic instead of actually trying to work it out. This will help solve the problem because one wont need to keep trying ways of rearranging the dominoes to make it work. • How does problem solving differ if achieved through analogy vs insight and creativity? - Reasoning by Analogy: extending the solution of a problem to another problem with an analogous structure • Way to solve problems without insight • Thinking and seeing that you can solve a problem using what you previously know - Insight/Creativity: sudden restructuring of a problem, producing a solution, involving special processes, not used in normal problem solving • It is in the nature of insight that it cannot be produced on cue or happen all the time - Insight and creativity is a method of problem solving that cannot be produced on cue or constantly, but instead are unique cases in which a solution just comes to the solver. Analogy on the other hand is using past situations of problem solving and applying that same type of solution to a current problem, which can be produced on cue. • How might failure to solve the Two String problem involve functional fixedness? 13 Friday, December 4, 2015 - Functional Fixedness: failure to solve a problem because understanding of the problem is limited by a mental set, based on past experiences - Two String Problem: • You must tie the two strings together using on the objects in the picture • How do you do this? - You make a pendulum out of one of the strings by tying the pliers to one end and swinging it so you can reach both strings at the same time - Functional fixedness plays into the equation here because this use of pliers is not the typical use of pliers and so it is challenging for the problem solver to think of the pliers in this way. If make a pendulum was a typical use of pliers and string, it would be a very simple problem to solve. • How is dopamine related to perception of positive mood? - Dopaminergic Theory of Positive Affect • Neural circuits using neurotransmitter dopamine associated with positive mood • Dopamine circuits are the key to prefrontal cortex and working memory • Dopamine circuits, prefrontal cortex and anterior cingulate cortex is the key to cognitive flexibility - Dopamine is related to the perception of positive mood because the circuits of dopamine are especially active when one is experiencing positive mood. • How is dopamine related to cognitive flexibility? - Cognitive Flexibility is the ability to switch from one way of looking at a situation to another. This ability is due to the relationship between dopamine, the prefrontal cortex, and the anterior cingulate cortex. Dopamine is critical to activity in the prefrontal cortex, which plays a central role in working memory and problem solving. Working memory is the basis of cognitive flexibility. • How is positive mood related to cognitive flexibility? - Positive mood has been shown to be related to how much dopamine a person has at a given time. Cognitive flexibility relies on dopamine to be able to function 14 Friday, December 4, 2015 and therefore, positive mood is a necessity for the ability to use cognitive flexibility. • How does one use disconfirmation to confirm the validity of a rule? - Confirmation Bias: people tend to have a bias towards confirming rather than disconfirming their beliefs - Disconfirmation: testing a hypothesis by seeking to show it to be false - If one uses a test to see if they can disconfirm a rule but it fails, they will know that the rule is true and cannot be disconfirmed. In other words, in the process of trying to find a situation or way that a rule is false, one fails to due this and can now confirm the rule is true. • Why do people have difficulty using disconfirmation to confirm the validity of a rule? - For many people, disconfirmation is counterintuitive and instead they look for ways to confirm their assumption. This is called confirmation bias, and it is defined as the tendency for people to have a bias towards confirming rather than disconfirming their beliefs. • In what situation do subjects have difficulty if they are using difference reduction to solve problems? - Difference-Reduction: Applying operators so as to reduce the difference between the current state • and the goal state • Chart the progress you are making by looking at the difference between your current state and the goal state • ***People tend to have trouble solving a problem at points where the correct solution involves increasing the difference between the current state and the goal state - Current state is becoming more different than the goal state than it was previous • How are sub-goals important to the application of operators in problem solving? - Means-End Analysis • 1. Identify the most important difference between current and goal state 15 Friday, December 4, 2015 • 2. If operator cannot be applied to reduce this difference, create a subgoal to eliminate difference between current state and condition for applying desired operator - Even though the subgoal is technically bringing your farther from the goal state - Operator: things used to transform starting state into the goal state - Decision Making • What is the difference between system 1 and system 2 - System 1 • Uses heuristics • Fast and automatic • Involved with emotional system - In order to make these quick decisions, you have to be able to relate to it on some kind of emotional level • Left Temporal Cortex - Where the actual computation occurs - System 2 • Uses analysis and algorithms - Algorithms: clearly defined procedures that always solve problems • ***They are different than heuristics because they always produce a solution, even if it is not the fastest, most efficient method of solving it What happens to subjective expected utility as the probability of an option • increases? - Subjective expected utility A (Probability A X (Value )B - As the probability of an option increases, the subjective expected utility increases. • What happens to subjective expected utility as the value of an option increases? - As the value of an option increases, the subjective expected utility increases. 16 Friday, December 4, 2015 • What is the difference between a heuristic and an algorithm? - Heuristic: a shortcut or rule of thumb that often, but not always, helps to solve a problem - Algorithm: a clearly defined set of procedures that, if given enough time, will always solve a problem • What is the significance of base rates for the representativeness heuristic? - Base Rate: rate at which an outcome of interest is known to occur on the basis of prior information - Representativeness Heuristic: assigning a high probability of membership in a class to instances that are representative or typical of that class • In other words, judge the likelihood of an event - not by the standard methods for calculating probabilities - but rather by how similar that event is to another event of known probability - Base rates are important for this type of heuristic because this uses a known expectancy rate and that is essentially what a base rate is. • How do people make errors in the Monty Hall problem by assuming that the two choices required in the problem are independent? - Monty Hall Problem: On a game show, there are 3 doors and behind one is a car. You need to pick one and then the host will open one of the other two doors that has the goat in it. You are then given the opportunity to switch the door you choose. Would you switch or stay? In other words, which would be the highest probability that you would get it right? • Most people said that it makes no difference and that they won’t switch • The real answer is that it always makes more sense to switch because it is twice the chance of getting the car • Switching: If you originally picked a goat and then switch, you have a 100% of winning the car because the only other thing left would be the car (because you're first pick was a goat and now the host opened another door with the goat and therefore switching can only be to a car) - People make errors because they do realize that if you decide to switch after one door has been opened and originally picked a goat (66% chance), you have a 17 Friday, December 4, 2015 100% chance of opening the door with the car. People don’t realize that by not switching, you still had just a 33% chance of picking the goat originally. • In the Monty Hall problem, what is the probability that you will find the car if you change your choice after the announcer opens a door? - The chance you will find the car if you change your choice is 66%. • How is the conjunction fallacy related to the support fallacy? - Support Fallacy: event judged less likely if stated in general terms than if stated in terms of specific variants • Ex: What is the probability that Dopkins will die tonight? VERSUS What is the probability that Dopkins will die tonight due to a heart attack, car accident, or some other means? - Conjunction Fallacy: the belief that the likelihood of two independent events occurring together is greater than the likelihood of either one occurring alone • Ex: read this - “Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti-nuclear demonstrations.” Given this, which is more likely? - a) linda is a bank teller OR b) Linda is a bank teller and is active in the feminist movement - 90% of people choose B even though A is theoretically more likely, which is this fallacy - In both of these fallacies, the more specific an option is, the more likely an individual is to respond to it. • How is the representativeness heuristic related to base rates? - These two are related because the representativeness heuristic is judging a situation using past known frequencies of a certain event, and the base rate is this actual frequency. • How does Bayes rule allow the combination of base rates with current data? - Bayes' Rule: a formula that relates two conditional probabilities: the probability of event x if event y has occurred, and the probability of event y if event x occurred 18 Friday, December 4, 2015 - This theorem allows us to use the probability of a conclusion being right in comparison to the rate at which that conclusion is normally right in order to come to a correct conclusion. • How does a person suffering the gambler’s fallacy misunderstand the random basis of the events to which he applies the fallacy? - Gambler’s Fallacy: belief that a randomly determined event is more likely if such an event has not happened recently • Ex: a fair coin is flipped 20 times and every time it has been heads. One is more likely to bet on tails for flip 21 even though previous flips have no correlation to the next flip. - This person doesn’t realize that previous outcomes of a random even don’t affect the future outcomes. • According to Prospect Theory which do people value more, gains or losses? - Prospect Theory says that people value gains more than losses because they will choose the risky alternative that has the possibility of no loss over a sure loss even though the average expected loss is smaller under the sure loss (as shown in example 2) • Ex 1: Choice 1: gain $800, Choice 2: gain $1000 with probability .85 and $0 with the probability .15 • Ex 2: Choice 1: lose $800, Choice 2: lose $1000 with probability .85 and lose $0 with probability .15 - Most people choose Choice 1 in the first example and Choice 2 in the second example - Risk Aversion: people prefer a sure gain over a risky but potentially greater gain - Risk Seeking: people prefer a risky alternative that involves the possibility of no loss over a sure loss even though the average expected loss is smaller under the sure loss • How does Prospect Theory use people’s differing evaluation of gains and losses to explain the results for the unusual disease problem? - Unusual Disease Problem - disease expected to kill 600 people • Situation 1 19 Friday, December 4, 2015 - Program A: 200 people saved • MOST choose this even though program A and B both work out to be the same thing - Program B: 0.33 probability everyone saved and 0.66 probability nobody saved • Situation 2 - Program A: 400 people die - Program B: 0.33 probability nobody dies, 0.66 probability that 600 people die • MOST choose this even though program A and B both work out to be the same thing • Prospect Theory explains this because it shows that people want to choose a sure gain over (200 people saved/0.33 probability nobody dies, 0.66 probability that 600 people die) over something that explicitly shows there will be loss (.33 everyone saved and .66 nobody saved/400 people die). 20


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.