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Judgement Heuristics

With the promotion evaluation almost over, your manager, Mr. Myers, contacts you directly to explain your next assignment. He informs you that the board of directors is really looking to promote someone that has an excellent background in the major categories of heuristics. With that in mind, Mr. Myers asks that you prepare a report discussing the 3 types of judgment heuristics.

Judgment Heuristics


Write up to 3 paragraphs that respond to the following questions with your thoughts, ideas, and comments. you must post a report to the discussion board consisting of 750-900 words in which you discuss the 3 types of judgment heuristics.

For full credit, you must address the following in your posting:

Discuss judgment heuristics.
Discuss the strategy of judgment heuristics.
Discuss the three types of judgment heuristics (availability, representative, and affect).
Explain the positive hypothesis testing.

Explain and counter the likely judgment heuristics and biases that might come into play when evaluating alternative solutions to a business problem.

Solution Preview

Heuristics are those rules we create for ourselves, based on previous experience or what is part of our inner selves. Some heuristics lean toward educated guesses based on experience; others lean toward our intuition. People use heuristics when they have information that is incomplete or does not seem correct. Unfortunately, using heuristics can lead to biases and judgments that are incorrect.

An example of this is: "When we judge a given product the first thing we look at is its price. If the price is low we will almost always judge the product as less attractive than a product with a higher price." We adhere to the heuristic "the more expensive the better." (Kikos, 2011)
Representative heuristics often create errors because of our expectations based on other factors than just the current judgment. Representative heuristics create decisions based on things like stereotyping, biases, and misconception. It promotes insensitivity for a person, group, or situation. For example, after 9/11, every bomb threat called in, every incident involving someone with features of Middle Eastern people was considered a major attack on the American people until proven otherwise. A plane crash was identified as a terrorist act, until the facts presented it to be merely a mechanical ...

Solution Summary

The expert examines judgement heuristics. The major categories of heuristics are determined.