Question: What are some common mistakes that people make when making decisions?

Sample Answer (The AREA technique):

Answer: Common mistakes people make when making decisions include relying on intuition alone, being influenced by cognitive biases, and not considering the long-term consequences.

Reason: Relying solely on intuition can lead to irrational decisions, as our gut feelings might not always align with objective facts. Cognitive biases, such as confirmation bias or anchoring bias, can also skew our judgment. Additionally, focusing only on immediate outcomes without considering long-term consequences can lead to shortsighted decisions.

Example: For instance, someone might impulsively purchase an expensive item they don't need because they are influenced by an emotional response or sales pressure, later regretting their decision when they face financial difficulties.

Alternative: To avoid these mistakes, people can employ decision-making techniques such as gathering information, weighing pros and cons, and consulting with others to gain different perspectives.