AP PSYCHOLOGY

Detailed explanation-1: -The framing effect is a cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations; e.g. as a loss or as a gain. People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented.

Detailed explanation-2: -When making decisions, people will be influenced by the different semantic descriptions of the same issue, and have different risk preferences, which is called the framing effect indicating that people make decisions based on the potential value of losses and gains rather than the final outcome.

Detailed explanation-3: -What is Framing Bias? Framing bias occurs when people make a decision based on the way the information is presented, as opposed to just on the facts themselves. The same facts presented in two different ways can lead to people making different judgments or decisions.

Detailed explanation-4: -Framing bias refers to our propensity to be influenced by the manner in which information is presented. A salesperson promoting a product would much rather claim ‘85% of customers were satisfied with the product’ than admit ‘15% of customers were dissatisfied’.