Which one of the following refers to the ‘framing effect’ in the context of decision making?

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CollectorBabu · Accepted Answer

Correct Answer: The way in which options are presented influence the selection of option. * The framing effect is a cognitive bias where people decide on options based information. o For example, take two yogurt pots. One says “10 percent fat” and another says “90 percent fat free”. * The options are presented with positive or negative connotations. * The Framing effect is where we are presented two or more options, but the outcome is the same. * People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented. * Prospect theory states that individuals are more sensitive to losses than gains, so we tend to become risk-averse.

Which one of the following refers to the ‘framing effect’ in the context of decision making?

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