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Rationality is a philosophical word which means exercising reason in thinking. It refers to the process of conforming to facts of reality rather than one’s believes and values when making decisions and taking actions. Rational decisions are made based on adequate reasoning, optimization of goals or benefits derived from certain actions as well as strong evaluation of personal beliefs and values. According to Nickerson, rationality simply means quality thinking (2008). It is acting by reason, that is, according to facts of reality of life. Rationality requires both qualitative and quantitative analysis of the underlying assumptions made during reasoning and decision making processes. Rationality is not solely based on our feelings or thoughts, but rather realistic facts. It refers to one’s ability to consider various factors or variables of a situation, gathering of relevant data and analysis of the data so as to make a sound decision or conclusion.

Cost of Making Systematic Mistake

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By definition, systematic mistakes refer to errors in thinking which occur when an individual makes decisions by majorly basing majorly on past or previous experiences. Systematic mistakes result from applying the rule of thumb principle in decision making (Elster & Rendall, 2009). It is a situation whereby an individual does not take critical analysis and cautious evaluations of problems before making decisions.

The major costs associated with systematic mistakes include jumping into wrong conclusions, feeling of inadequacy after making mistakes as well as decrease in a person’s capacity for creativity and innovativeness. This is because decisions are often made based on held beliefs and status quo biasness. Systematic mistakes often result from memorizing solutions to problems. Consequently, no new solutions are generated.

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Moreover, systematic mistakes leads to incomplete consideration of problems at hand, and hence provides inadequate challenging and questioning of facts before actions are made. Systematic mistakes do not provide realistic reasons and facts that can be used in making well-calculated decisions.

Irrational Thinking and Decision Making

In my view, a person may act irrationality by making too many assumptions based on his or her beliefs. Such an individual may thus make various mistakes in thinking and consequently unrealistic decisions. For example, one may fail to consider absolute facts of realities of life and thus make a decision which may gravely and adversely affect him/her in future. Furthermore, rationality in an individual is determined by his/her approach in thinking and decision making processes.

However, it is important to note that rationality does not entail absolute perfection in thinking or decision making, but rather basing one’s arguments on reasoning and real facts. It implies use of logic in decision making.

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