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We all make decisions everyday and these are based upon our previous experiences or our knowledge or our preconceived notions or even preconceived wishes for the future outcome. We deal with simple ones like what to wear or eat to the more challenging ones like what university to go to or a business decision. The recurrence of a piece of information in our minds makes it a strong probability that we will make a choice considering this information.
We are more inclined to say ‘no’ to risky decisions even if they can be more worthwhile unless the risk is to avoid a big potential loss. Be aware of why you come to the decision you have made because by using the wrong concept it is possible to make a totally erroneous decision which ignores the obvious facts of the case and in hindsight is completely stupid. Due to the high number of decisions we have to make on a daily basis it is almost impossible to make rational decisions all the time because our ability for reasoning is limited.

A classic example of that is a study from Hastie & Park asking a group of people if the letter K appears more often as the first letter of a word or as the third. They asked a group of people to decide if a student from University X (where 80% of the students were studying humanities) was either a computer science student or a humanities student based upon him being described as neat and tidy, dull, mechanical and a poor writer. We feel that we have invested so much that we feel obliged to continue even if huge losses are involved. We naturally would go more for a product in the supermarket that says 80% fat free than 20% fat.
It is just a different approach to present something so we are more susceptible to buy the idea. The reason for that is this information is more available in our minds as we think more about words where the K comes as the first letter.

95% of the group decided in favour of computer science, ignoring completely the base rate factor.
Another very famous example of this was when Neville Chamberlain, the British Prime Minister, read this statement to a cheering crowd in front of 10 Downing St. The conclusion is that even if the frequency of two things is even we tend to make our decisions to meet our beliefs and stereotypes.

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