Imagine that you are the general manager of the transit system in a major Canadian city. It has come to your attention that customer complaints have increased by nearly 20% over the last 11 months. This increase in complaints is largely due to customer's insatisfaction with the delay of streetcars and buses as well as the "discourtesy" shown by some employees of the transit system.

Over the last 11 months, customers have complained about everything from employees sleeping, reading or watching clips, to more serious allegations of dangerous driving, verbal rudeness, and even assault. In fact, more and more customers seem to be fed up and share their experiences on social media.

You realize that it is time to act if you are to avert a major crisis.

1.From the list of biases shown on the next slide, please select three possible biases and explain how these could affect your decision-making process.

Bounded rationality at work:

Perceptual defense

Problem defined in terms of functional specialty

Problem defined in terms of solution

Problem diagnosed in terms of symptoms

Availability bias

Confirmation bias

Unawareness of all possible solutions

People are weak intuitive statisticians

Anchoring effect

Satisficing

Framing

Escalation of commitment

Hindsight