02 Oct As a class assignment, you are working with a research report related to decision making. You are finalizing the first draft and will submit it for your i
Exp19_Word_Intro_Cap_Thinking
Project Description:
As a class assignment, you are working with a research report related to decision making. You are finalizing the first draft and will submit it for your instructor's approval. In so doing, you edit and format text, include a table of contents and a cover page, design a table, and include citations and a Works Cited page.
Steps to Perform:
Step
Instructions
Points Possible
1
Start Word. Download and open the file named Exp19_Word_Intro_Cap_Thinking.docx. Grader has automatically added your last name to the beginning of the filename.
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By displaying nonprinting characters, you see such indicators as page and section breaks, which are helpful when managing document flow.
Display nonprinting characters. Note that the document includes a blank first page. Change the document theme to Retrospect and select Colors of Blue Warm. Select all text in the document and change the font to Times New Roman. Click the View tab and display the ruler.
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Some phrases, such as full names of people or publications, display more attractively if they are not divided between lines, as is the case with the name of the publication referenced in this paper. By including a Nonbreaking Space, you ensure that the publication name will not be divided between lines.
Remove the word why from the second sentence in the first body paragraph on page 2. Remove the space following the word Cognitive in the last sentence of the first body paragraph on page 2 and insert a Nonbreaking Space symbol between Cognitive and Creativity.
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Insert check mark bullets on the three single-line paragraphs in the first body paragraph, beginning with the irrationality of humans and ending with the nature of well-being. Reduce the indent to position bullets at the left margin and ensure that each bulleted text begins with a capital letter. Change the left and right margins to 1”.
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In Outline view, you can collapse headings to any level of detail and then manage sections, perhaps dragging to rearrange them as you do in this step.
Change to Outline View. Change the Show Level setting to Level 2. Drag Stages of Prospect Theory directly below the heading Prospect Theory so that it becomes the first sublevel in the Prospect Theory section. Close Outline View. Bold the bulleted items on page 2.
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Select all text in the document and adjust paragraph spacing before and after to 0 pt. Double-space the document. Add a first line indent of 0.5" to the first body paragraph on page 2 (beginning with The study of behavioral economics). Center the title and subtitle (Cognitive Creativity and An Analysis). Change the line spacing of the first line, Cognitive Creativity, to 1.0.
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Text that is formatted in a particular style adheres to the design requirements of the style. To quickly change all text based on a particular style, or to ensure that text that is typed in that style is formatted appropriately, you can modify a style. By default, style settings are applied to the open document only.
Modify document properties to include Parker Adams as the author, removing any existing author. Modify Heading 1 style to include a font of Times New Roman, 14 pt., Black, Text 1. Modify Heading 2 style to include a font of Times New Roman, Black, Text 1. Changes in style should apply to the current document only.
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Tabbed text can, in some cases, be formatted and worked with more easily if it is identified as a table. In this case, arranging the tabbed text as a table enables you to apply a preset style and to include an appropriate formula in a future step.
Select the lines of tabbed text near the top of page 3 (beginning with System 1 and ending with 0.39) and convert the selection to a table, accepting all default settings. Insert a row above the first row of the new table, merge all cells, and type Systems of Decision Making. (Do not type the period.) Center text in the first row.
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Insert a row below the first row. Split the cells in the row, adjusting the number of columns shown in the dialog box to 4 and ensuring that Merge cells before split is selected. Select the table and choose Distribute Columns on the Table Tools Layout tab to align all columns.
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Type the following text in row 2:
System Theory Characterized by Percentage Employed Probability Factor
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Insert a row at the end of the table and merge the first three cells on the new row. Type Average Probability in the merged cell on the last row and center the text. In the last cell on the last row, enter a formula to average the numbers in the column above. You do not need to select a Number format.
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Apply a table style of List Table 3 – Accent 1 (row 3, column 2 under List Tables). Deselect First Column in the Table Style Options group to remove bold formatting from the first column. Bold text on the second row. Select the table and change all font to 10 pt. size. Center all text in rows 2, 3, and 4. Center the numeric value in the last cell on the last row.
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Add a caption below the table with the text, Table 1: Decision-Making Strategies. (Do not type the period and be sure to include a hyphen between Decision and Making.) Change the probability factor for System 1 (in row 3) to 0.62. Update the field in the last cell on the last row to reflect the change in probability.
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Select rows 2, 3, and 4, click the Table Tools Design tab and choose a Pen Color of Black, Text 1. Ensure that the line style is a single line and the line weight is ½ pt. Apply the border selection to All Borders.
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A footnote provides space for additional clarity or exposition on a statement included in the document. Use a footnote if you want to provide additional detail, but do not want to clutter the document text with that information.
Click after the period that ends the last sentence in the first body paragraph under System Biases (ending in economical solutions to problems). Insert a footnote with the text, For more information on theory-induced blindness, visit http://cognitivecreativity.com/theory. (Include the period and be sure to include a hyphen between theory and induced.) Right-click the footnote and modify the style to include Times New Roman 12 pt. font.
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Shade the first two lines on page 2, Cognitive Creativity and An Analysis in Blue, Accent 2, Lighter 60% (row 3, column 6). Add a ½ pt. Box border, selecting color of Black, Text 1. Insert a DRAFT 1 watermark, colored Red (second column in Standard Colors).
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Click before the Cognitive Creativity heading at the top of page 2 (in the shaded area) and insert a page break. Click before the new page break indicator on the newly inserted page 2 and insert a table of contents, selecting Automatic Table 1.
Mac users, select the Classic table of contents style.
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Because you plan to format the first page independently of the remaining pages, you insert a continuous section break before the first page is inserted. Breaking a document into sections enables you to format each section independently.
Click before the table of contents title and insert a continuous section break. Click before the page break indicator on the first page and insert text from the file Cover.docx. Use settings in the Page Setup dialog box to center the cover page vertically. Ensure that the settings apply to the current section only.
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Click before the fourth blank paragraph below the words An Analysis on the Cover page. Insert Question_Mark.png. Change the picture height to 1.5” and choose Top and Bottom text wrapping. Apply an artistic effect of Paint Strokes to the picture (row 2, column 2).
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Cover pages typically do not include such items as watermarks, headers, or footers. You ensure that the cover page in this document is clear of such items.
Add a right-aligned header. Type Parker Adams and include a space following the name. Insert a page number in the current position, selecting the Plain Number option if available. Ensure that the header does not show on the first page. The watermark may be automatically removed from the first page as well. Click before Submitted by Parker Adams at the end of the document. Insert a right tab at 5.5”. Press TAB to align the text at the right tab stop.
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Change the writing style to MLA. Click before the period ending the first sentence in the paragraph under the Decision Systems heading on page 3 (ending in and decisions are made). Insert a citation, using the existing source of Daniel Conner. Edit the citation to show page 157 and to suppress Author, Year, and Title).
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Click before the period ending the first sentence under the System Biases heading (ending in theory-induced bias). Insert a citation to a new source as follows, making sure to include a hyphen between Decision and Making in the Title:
Type: Article in a Periodical
Author: Leo James
Title: Decision-Making Strategies
Periodical Title: Journal of Behavioral Economics
Year: 2020
Month: April
Day: 21
Pages: 45-52
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Insert a page break at the end of the document. Insert a bibliography, selecting Insert Bibliography so that a title is not included. Mac users, delete the title after inserting the bibliography. Click before the first source shown and press ENTER. Click before the new blank paragraph and include a centered line with the words Works Cited. (Do not include the period.) Select all text on the Works Cited page and change the font to Times New Roman 12 pt. Change the line spacing of the two bibliography sources to Double. Remove any Before or After paragraph spacing from all text on the Works Cited page.
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Select the heading, Decision Systems, on page 3. Insert a comment reading This is often referred to as Decision Support Strategies. (Include the period.) Check spelling and grammar, making corrections as necessary. The word spills is correctly used so you should ignore the error. Ignore any clarity and conciseness concerns.
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Save and close Exp19_Word_Intro_Cap_Thinking.docx. Exit Word. Submit the file as directed.
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Total Points
100
Cognitive Creativity
An Analysis
The study of behavioral economics encompasses a vast array of topics. Simply put, behavioral economics examines the reasons individuals often make less-than-optimal decisions and attempts to predict the circumstances under which those decisions occur. In addition, the study of behavioral economics explores how the presence of risks affect optimal decision-making. Many scholars have emerged in this field, but few are as prominent as Daniel Conner, Nobel Prize winner, researcher, professor, author of a textbook on creative thinking. In this book, Conner explores the human psyche and presents findings related to economic decision-making. A wealth of knowledge, “Cognitive Creativity” explores three main areas of behavioral economics:
· The concept of prospect theory
Decision Systems
According to Conner, the human brain is divided into two systems, which determine the way thoughts and opinions are formed, and decisions are made. The first system, System 1, can form thoughts quickly and make snap decisions using association and metaphor, producing a rough draft of reality. System 2, on the other hand, is much slower and more deliberate. Drawing on System 1’s rough draft of reality, System 2 is able to arrive at reasoned beliefs and explicit choices. A drawback to System 2, however, is that it is lazy and tires quickly. Instead of thoroughly analyzing information provided by System 1, System 2 is usually content to accept the simple but sometimes unreliable information about reality that System 1 provides. According to Conner in “Cognitive Creativity,” although “System 2 believes itself to be where the action is, the automatic System 1 is the hero of this book”.
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Systems of Decision Making |
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System Theory |
Characterized by |
Percentage Employed |
Probability factor |
|
System 1 |
Quick thinking |
68% |
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|
System 2 |
Deliberate decisions |
32% |
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|
Average Probability |
0 1 |
Table 1 : Decision- Making Strategies
System Tendencies
Humans often fall prey to cognitive biases, which are fallacies in reasoning and judgment because of holding on to one’s individual preferences and beliefs, regardless of any contrary information that is presented. As such, humans can make irrational decisions that do not provide the most value to the decision-maker. System 1 is generally responsible for maintaining cognitive biases, due to System 2’s tendency toward laziness. For example, an “anchoring bias” is a comonly known cognitive bias. In this particular bias, the human mind has a tendency to trust too heavily in the first piece of information provided, thanks to System 1’s ability to come to certain conclusions quickly. In fact, System 1 often operates just under the radar of consciousness. Often, an individual will come to certain beliefs or form different opinions without consciously considering why those beliefs or opinions have been formed. As such, humans are sometimes predisposed to making decisions that do not make the most sense or provide the most value.
System Biases
Another cognitive bias that can cause humans to make irrational decisions is know as theory-induced bias. According to Conner, theory-induced bias occurs when an individual has accepted a theory and uses it as a tool in thinking, he or she becomes unwilling to notice any flaws in the theory. Persuading a person to disbelieve a theory is significantly more difficult than convincing someone to believe a theory. Often, individuals believe that because a solution to a problem worked once, it will work every time. As such, theory-induced blindness usually causes individuals to disregard valuable and more economical solutions to problems.
In “Cognitive Creativity,” Conner argues that human reasoning, when left to its own devices, is likely to engage in many systematic errors and fallacies. Individuals should attempt to recognize cognitive biases and attempt to work around them, to think and make decisions as rationally as possible. Humans are much more apt to make decisions based on instict rather than rationality and overcoming the tendency to rely on instinctual or “knee-jerk” thoughts and decisions is the first step in the journey toward rational thinking and decision-making.
Prospect Theory
Another topic covered in “Cognitive Creativity” is the concept of prospect theory. Simply defined, prospect theory examines the way individuals make choices between probabilistic alternatives involving risk, when the probabilities of outcomes are unknown. This theory suggests that people make decisions based on the perceived, potential value of gains and losses, instead of actual outcomes. Additionally, prospect theory believes that individuals determine the value of gains and losses using different techniques, or “heuristics.” Instead of modeling optimal decisions, prospect theory in behavioral economics attempts to model real-world decisions and choices. As such, the theory can adequately explain the decision-making process of most individuals.
Stages of Prospect Theory
In prospect theory, the decision-making process is broken down into two stages. The first phase, called “editing,” is the process of examining outcomes of a decision. Once the outcomes are determined, they are ordered according to the individual’s aversion to risk. Depending on the person, certain outcomes may be riskier than others, and may subsequently be avoided. On the other hand, some outcomes may be deemed by another individual as less risky and may be preferred. During the editing phase, a decision-maker sets a reference point and considers greater outcomes as gains and lesser outcomes as losses. In the second phase, which is called “evaluation,” an individual determines a value based on the probabilities of possible outcomes and chooses an alternative that has the highest utility for the individual decision-maker.
Probability Analysis
Prospect theory can be illustrated in problems related to probabilities of certain outcomes. For example, if a person was offered a 25% chance to win $500, or a 75% chance to win $50, different individuals would make different choices, depending on their tolerance for risk. Additionally, everyone’s risk tolerance may increase or decrease, depending on the amounts involved or whether the outcome could cause the person to become better or worse off. For instance, many people buy both lottery tickets and insurance policies. Most individuals are okay with spending a couple of dollars for the chance to win millions, while at the same time purchasing insurance policies to protect against large losses on expensive items. In prospect theory, risk tolerance is the key motivator in the decision-making process for individuals.
Conclusion
In the last pages of “Cognitive Creativity,” Daniel Conner explores the facets of happiness and examines ways to maximize well-being. According to Conner, each person is comprised of two “selves.” The first self is known as the “experiencing” self, while the second self is known as the “remembering” self. Typically, the remembering self is stronger than the experiencing self. For example, if a person watches a great movie in a theater, but during the last 10 minutes of the movie, another person spills soda on the moviegoer, the moviegoer will likely remember the entire movie experience in a negative light. Often, people confuse memories with experiences, and as a result, some experiences are remembered in negative ways, even though most of the experience was pleasurable. Generally, the way an experience ends is better remembered than the way an experience was lived. To maximize happiness, a conscious effort must be made to remember an experience and not simply the negative parts.
According to Conner, an individual’s “emotional state is largely determined by what they attend to, and they are normally focused on their current ability and immediate environment”. For instance, someone could be stuck in traffic, but remain happy because they just received some great news. On the other hand, a person struggling with the loss of a loved one could watch a funny movie but still feel depressed. To circumvent this, individuals can work to stay present in the moment, and try not to let negative emotions color happy experiences. Additionally, Conner notes that individuals are prone to focus on only one aspect of a decision or event. The potential for error increases as an individual’s focus is homed in to one facet of a decision or experience. Often, a decision or experience is made up of many different aspects. When an individual is asked to identify what would make them happy in life, they often reply with an answer consisting of one thing, such as money, health, or love. Happiness is made up of many different factors. No sole thing such as wealth can make a person truly happy.
Daniel Conner does an excellent job exploring and communicating the inner workings of the human mind. He presents an excellent argument that humans are typically irrational and do not make decisions that provide the most economical value. In addition, humans are often subconsciously subject to cognitive biases, because of holding onto one’s preferences and beliefs. As such, Conner discusses strategies for individuals to overcome cognitive biases and make the most economical choices. Finally, Conner touches on the nature of happiness and examines ways for individuals to maximize happiness, based on the inner workings of human consciousness.
