LSU PSYC 4030 Harman Exam 1 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Nicolaus Bernoulli - CORRECT ANSWER - He created The St. Petersburg Paradox
Daniel Bernoulli - CORRECT ANSWER - He solved the St. Petersburg Paradox
using utility - CORRECT ANSWER - How did Daniel Bernoulli solve the St. Petersburg
Paradox?
utility - CORRECT ANSWER - A measure of satisfaction an individual gets from the
consumption of the commodities
Utility - CORRECT ANSWER - A measurement of usefulness that a consumer obtains
from any good
decreasing marginal utility - CORRECT ANSWER - the utility of money decreases
relative wealth
Von Neuman & Morgenstern - CORRECT ANSWER - Created the Theory of Games and
Economic Behavior
Daniel Bernoulli - CORRECT ANSWER - Created Expected Utility Theory
outcome
probability
context - CORRECT ANSWER - What makes a decision good?
,outcome - CORRECT ANSWER - key component in finding out what makes a good
decision
probability - CORRECT ANSWER - the likelihood that a different outcome happens
context - CORRECT ANSWER - benefits for a given person at a given time
optimal - CORRECT ANSWER - best outcome
1980 - CORRECT ANSWER - _______________ was when Judgement and Decision
making society was formed and had its first meeting
recent - CORRECT ANSWER - The judgement and decision making field is
_____________________ (recent/old)
judgement - CORRECT ANSWER - assessment or belief about a situation based on
available info
decision - CORRECT ANSWER - commitment to a course of action
normative
descriptive
prescriptive - CORRECT ANSWER - What are the three models of decision-making?
rational model or economic model - CORRECT ANSWER - What is another term for a
normative model?
Normative models - CORRECT ANSWER - This model will tell you what is the best
decision to make
, Descriptive models - CORRECT ANSWER - This model is inherently psychological
Descriptive models - CORRECT ANSWER - This model seeks to model how humans
actually make decisions
Prescriptive models - CORRECT ANSWER - This model aims to help people make better
decisions
pros and cons list - CORRECT ANSWER - Give an example of a prescriptive model.
pros and cons list - CORRECT ANSWER - One of the earliest prescriptive models
Normative model - CORRECT ANSWER - What model of decision making is this? How a
rational actor would decide if certain assumptions were met
normative models - CORRECT ANSWER - beginning in philosophy and mathematics;
later formalized in economics
Chevalier de Mere - CORRECT ANSWER - degenerate gambler who was a French
aristocrat (his words not mine)
Chevalier de Mere - CORRECT ANSWER - He wanted to figure out a way to beat the
game and reached out to Blaise Pascal; Pascal reached out to Pierre de Fermat
Pascal and de Fermat - CORRECT ANSWER - Who came up with probability?
EV = ∑(p x o)
expected value equals the sum of probability times outcome - CORRECT ANSWER -
What is the formula for expected value?
ACTUAL Exam Questions and CORRECT
Answers
Nicolaus Bernoulli - CORRECT ANSWER - He created The St. Petersburg Paradox
Daniel Bernoulli - CORRECT ANSWER - He solved the St. Petersburg Paradox
using utility - CORRECT ANSWER - How did Daniel Bernoulli solve the St. Petersburg
Paradox?
utility - CORRECT ANSWER - A measure of satisfaction an individual gets from the
consumption of the commodities
Utility - CORRECT ANSWER - A measurement of usefulness that a consumer obtains
from any good
decreasing marginal utility - CORRECT ANSWER - the utility of money decreases
relative wealth
Von Neuman & Morgenstern - CORRECT ANSWER - Created the Theory of Games and
Economic Behavior
Daniel Bernoulli - CORRECT ANSWER - Created Expected Utility Theory
outcome
probability
context - CORRECT ANSWER - What makes a decision good?
,outcome - CORRECT ANSWER - key component in finding out what makes a good
decision
probability - CORRECT ANSWER - the likelihood that a different outcome happens
context - CORRECT ANSWER - benefits for a given person at a given time
optimal - CORRECT ANSWER - best outcome
1980 - CORRECT ANSWER - _______________ was when Judgement and Decision
making society was formed and had its first meeting
recent - CORRECT ANSWER - The judgement and decision making field is
_____________________ (recent/old)
judgement - CORRECT ANSWER - assessment or belief about a situation based on
available info
decision - CORRECT ANSWER - commitment to a course of action
normative
descriptive
prescriptive - CORRECT ANSWER - What are the three models of decision-making?
rational model or economic model - CORRECT ANSWER - What is another term for a
normative model?
Normative models - CORRECT ANSWER - This model will tell you what is the best
decision to make
, Descriptive models - CORRECT ANSWER - This model is inherently psychological
Descriptive models - CORRECT ANSWER - This model seeks to model how humans
actually make decisions
Prescriptive models - CORRECT ANSWER - This model aims to help people make better
decisions
pros and cons list - CORRECT ANSWER - Give an example of a prescriptive model.
pros and cons list - CORRECT ANSWER - One of the earliest prescriptive models
Normative model - CORRECT ANSWER - What model of decision making is this? How a
rational actor would decide if certain assumptions were met
normative models - CORRECT ANSWER - beginning in philosophy and mathematics;
later formalized in economics
Chevalier de Mere - CORRECT ANSWER - degenerate gambler who was a French
aristocrat (his words not mine)
Chevalier de Mere - CORRECT ANSWER - He wanted to figure out a way to beat the
game and reached out to Blaise Pascal; Pascal reached out to Pierre de Fermat
Pascal and de Fermat - CORRECT ANSWER - Who came up with probability?
EV = ∑(p x o)
expected value equals the sum of probability times outcome - CORRECT ANSWER -
What is the formula for expected value?
