Summary of Biases - Funny

I was burning out today so I had a little fun…

_ Cognitive Biases _

conservatism bias - fail to consider new information

-You are on a date with the perfect girl, she tells you she has a child, undaunted you still like her just as much.

confirmation bias - look for new information that supports your view

  • Your crush is not texting or calling you back and turned down your suggested hang out, but you confirm your hopes that they must like you because they just sent you a smiley emotocon.

Representative bias - simple decision rule takes place of more thorough analysis

  • You knew a great girl in high school, but she was a fat one, and you can’t stop thinking of her as a fat one even after hearing she was on the college volleyball team.

Illusion of control - belief one can affect an outcome

  • You think you can decide when a relationship begins and ends, so you trade relationships often, but always with the same sector of girl, only to find that the dinner costs of all your dates got too expense - but you don’t care because you were in control.

Hindsight bias - selective memory of past events

  • Every girl you have had sex with was a hottie - you never comprimised.

Anchoring and Adjustment bias - selecting an arbitrary value and adjusting up or down

  • You are still getting ignored by girls you knew in high school even though you are a sucessful investment banker now.

Mental accounting bias - money is treated differently depending on how it is categorized.

  • You are offered oral sex on your birthday and you savour the moment. You are offered oral sex on a Tuesday and you spend it quickly.

Framing bias - answer given is affected by the way the question is asked.

  • Your cutie pie saying “I love you” and it made you angry when said in the middle of a messy kitchen, but the same words made you happy when said in the middle of a messy bed.

Availability bias - putting undue emphasis on information that is readily available.

  • You can tell by their online dating account profile that they are a hot person.

_ Emotional biases _

Loss Aversion bias - feeling more pain in a loss than pleasure in a gain

  • Your last relationship broke your heart - therefore you never date again.

Overconfidence bias - overestimate intuitive ability and reasoning.

  • Everyone wants to date you, the only ranking from a girl you can get is “top pick”.

Self-Control bias - failure to address long-term goals due to insufficient self-discipline.

  • You have sex without a condom.

Status Quo bias - an emotional desire to do nothing.

  • You stay in your current not properly diversified relationship because you aren’t bothered to see what else is out there.

Regret Aversion bias - you do nothing out of fear that you could be wrong.

  • You don’t initiate asking girls out.

Endowment bias - your spouse holds onto your securities after you die.

  • Your spouse holds onto your large penis while in bed.

Wow Secret Sauce! that is so awesome and witty.

isint your representativeness bias more likely an anchoring bias. the initial impression you have on this girl is that she’s fat even though now she’s now a hottie yet you stick with prior views. Also can be considered conservatism.

Plz i need someone to clearly explain the difference between representativeness, availability and anchoring.

representativeness- you classify new info into sterotypes you already have, you may classify a stock as a growth stock depending on some characteristics of growth stock you have in mind

availability - make decidions based on easily recallable events.

anchoring- stick to prior view even after getting some new info

Anchoring - the first time you heard what the price of oil was it was $100/barrel so you forever measure oil prices after that as being good or bad depending on how it measures against that first impression.

Conservatism bias is failure to consider new information, like sell side analysts don’t incorporate bad info about their top pick because they are focused on being right.

Ok. you are giving me the theoretica definition which i know by heart. However, when you are given a case (like the funny case given in this topic), my problem is that each case could be classified in many biases.

So the question is, how to detect each bias (cons, anch, repr, and avail), i,e. what to look at the first thing.

Wittiness requires a degree of subtilty. Some of these jokes are overly direct.

Nonetheless, thanks for the light hearted analogies

Hit the nail right on the head with a lot of them, especially self-control bias.

why dint i see before exam

I was always trying to find a good way to remember this s**t. Now I find it.

I find it frustrating when people say that the CFA curriculum is applicable and bla bla. If you get to the root of an idea you can transfer that to many things. The critical thinking and 360 way of looking at things that the CFA program forces us to do is valuable and relatable to more jobs than people think. The concepts are very transferable and useful.

For example: a box spread that is wider isn’t better.

Representativeness: simple decision rule takes place of more thorough analysis

You judge a girl’s beauty by just her face rather than her total looks…