Cognitive Reflection Test Heuristics and Common Biases 3

Question 1

If it takes 5 machines 5 minutes to make 5 widgets, how long would 100 machines take to make 100 widgets?

Accepted Answer

5 minutes

Answer

Each machine makes one widget in 5 minutes, so 100 machines make 100 widgets in 5 minutes.

Question 2

Searching only for evidence that supports a belief you already hold is called:

Accepted Answer

Confirmation bias

Answer

Confirmation bias is the tendency to seek and favor information confirming existing beliefs.

Question 3

Believing after an election that you 'knew it all along' is an example of:

Accepted Answer

Hindsight bias

Answer

Hindsight bias makes past events seem more predictable than they actually were.

Question 4

Continuing to fund a failing project because of money already spent illustrates:

Accepted Answer

The sunk cost fallacy

Answer

The sunk cost fallacy is throwing good resources after unrecoverable past investments.

Question 5

Feeling the pain of losing $50 more strongly than the pleasure of gaining $50 reflects:

Accepted Answer

Loss aversion

Answer

Loss aversion means losses loom psychologically larger than equivalent gains.

Cognitive Reflection Test Practice Test