Critical Thinking and Decision Making Flashcards
7 cards from real FAST practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Critical Thinking and Decision Making flashcards as text
A supervisor notices that every time a new employee joins the team, productivity drops for two weeks. She concludes that new employees cause productivity loss. What logical flaw does this reasoning contain?
Answer: Correlation is mistaken for causation
Observing that two things occur together does not prove one causes the other — a classic correlation-causation error.
You must choose between Project A (guaranteed $50,000 gain) and Project B (60% chance of $100,000, 40% chance of $0). Which statement best describes the rational decision framework?
Answer: Project B has a higher expected value and may be preferred depending on risk tolerance
Expected value of B is $60,000 vs. $50,000 for A, but rational choice also weighs risk tolerance and context.
A manager receives a report showing that sales declined in Q3. Before drawing conclusions, which type of information is most critical to obtain first?
Answer: Baseline or comparative data from prior periods and industry trends
Without comparative context, a single data point cannot indicate whether the decline is unusual or significant.
An analyst argues: 'Our top competitor lowered prices, so we must lower ours too.' Which critical thinking error is most evident?
Answer: False dilemma — assuming only one response is possible
Assuming price-cutting is the only valid response ignores alternatives like improving value, targeting new segments, or differentiating the product.
During a group decision meeting, every team member quickly agrees with the leader's first proposal without raising concerns. This phenomenon is best described as:
Answer: Groupthink
Groupthink occurs when the desire for group harmony suppresses critical evaluation and dissenting views.
A decision-maker uses only the first piece of information received to evaluate all subsequent data. This is an example of which cognitive bias?
Answer: Anchoring bias
Anchoring bias occurs when an initial piece of information disproportionately influences all later judgments.
A team has invested $200,000 in a project that is now clearly failing. Some members argue they must continue because of money already spent. What fallacy is this?
Answer: Sunk cost fallacy
Money already spent cannot be recovered and should not drive future decisions — only future costs and benefits matter.