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Cognitive Biases: Think Clearly, Decide Better

Your brain lies to you in predictable ways. Learn the systematic errors in thinking that affect every decision β€” from confirmation bias to sunk cost fallacy. Based on Nobel Prize-winning behavioral economics research. Essential for investors, managers, doctors, lawyers, and anyone making important decisions. Recognize biases in yourself and others to avoid costly mistakes in work, money, and relationships.

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8
Lessons
403
Questions

Sample Flashcards from This Course

Here's a preview of what you'll learn:

Q1: 🧮 A decision has 65% chance of gaining $100k and 35% chance of losing $40k. Calculate the expected value: (0.65 × $100k) + (0.35 × -$40k) = ?
Q2: 💡 Warren Buffett's famous investing advice is: "Be fearful when others are {{1}}, and {{1}} when others are fearful."
Q3: βš–οΈ The tendency to judge the quality of a decision based on its outcome rather than the quality of the decision-making process is called ___ bias.
Q4: 🚨 Fill-in: The phenomenon where individuals are less likely to help a victim when other people are present is called the ___ effect.
Q5: 🧠 Fill-in: The mnemonic for remembering groupthink symptoms is "I Can't Believe Students Self-Impose Dumb ___," where the M stands for ___.

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Lessons

Lesson 1

Lesson 1: Availability & Representativeness β€” Why We Misjudge Probability

Learn how your brain tricks you into misjudging risks and probabilities through availability and ...

45 questions
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Lesson 2

Lesson 2: Anchoring & Adjustment β€” The Power of First Numbers

Discover how the first number you hear pulls all your estimates in its directionβ€”whether it's ran...

52 questions
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Lesson 3

Lesson 3: Confirmation Bias β€” Seeing What You Want to See

Learn how our tendency to seek information that confirms our beliefs leads to flawed decisions in...

51 questions
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Lesson 4

Lesson 4: Sunk Cost Fallacy β€” Throwing Good Money After Bad

Understand why we irrationally stick with failing investments, relationships, and projects just b...

54 questions
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Lesson 5

Lesson 5: Overconfidence & Planning Fallacy β€” Why Projects Always Run Late

Explore how we systematically overestimate our knowledge, abilities, and speedβ€”and learn why almo...

57 questions
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Lesson 6

Lesson 6: Loss Aversion & Framing Effects β€” Why Losses Loom Larger

Discover why losing $100 hurts more than gaining $100 feels good, and how the way choices are pre...

47 questions
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Lesson 7

Lesson 7: Hindsight & Outcome Bias β€” Judging Decisions by Results

Explore how hindsight makes past events seem predictable and why judging decisions solely by outc...

50 questions
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Lesson 8

Lesson 8: Social Biases β€” Herd Behavior, Groupthink, Authority

Discover how groups and social pressure systematically distort individual judgment, from conformi...

47 questions
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