Explain The Reasons That Human Decisions Can Be Flawed And Biased.

1. Explain the reasons that human decisions can be flawed and biased, thus leading to unsatisfactory outcomes.

Psychologists have discovered many aspects of human decision making that lead to unsatisfactory outcomes. First, humans feel worse about negative things than they feel good about positive things of the same amount, most of the time. This is known as loss aversion. Second, the processing of gains and losses often depends on the view-point from which the judgment is made. This reference point is often capricious and impacted by extraneous factors, leading to judgments that aren’t appropriate. Another factor is: people overestimate low probabilities and underestimate high probabilities. In addition, people often try to reason by using what’s known as the Gambler’s Fallacy. This means they believe that the outcomes of random probabilities should even out based on the previous outcomes. Finally, research shows that people may often be overconfident in the accuracy of their predictions. …show more content…
What would a researcher have to do to ensure that a new intelligence test is developed properly? What further considerations would have to be made in the development of a culture-fair test?

In order to ensure that a new test it developed properly, the researcher would have to ensure that the test is objective. Everything (Administration, scores, and interpretation) would have to be standardized. Everyone taking the test should have similar test-taking conditions. The test must be perceptive or significant enough so that averages can be calculated; it must produce a score to summarize the test taker's performance. The researcher would have to demonstrate that the test is reliable. To prove reliability, the results be able to be recreated by taking the test again. The test must measure what it is supposed to measure. The test shouldn’t rely on culture or knowledge. Instead, it should focus more on tasks that anyone can