ABSTRACT
Chapter 5 is the final chapter in Part 1, working with self, and covers critical thinking and making decisions under uncertainty. The chapter begins by focusing on the ground-breaking work in Daniel Kahneman's book Thinking Fast and Slow. Kahneman introduces System 1 and System 2 as conceptual characters in our brains. System 1 is fast, intuitive, automatic, but prone to errors. System 2 is slow, deliberate, rational, but can be lazy. Each system has important advantages and limitations that are explained in detail. Understanding System 1 and System 2 thinking sets the stage for discussion of the many cognitive biases all of us are prone to. Extensive discussion is devoted to when intuition can be trusted and when it can lead us astray. How quantitative analysis can be used to improve decision-making is also covered in detail. Chapter 5 concludes with practical ideas for putting these principles into practice, along with some real-world experiences from the author's career.
