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18 Cognitive Bias Examples Show Why Mental Mistakes Get Made

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18 Cognitive Bias Examples Show Why Mental Mistakes Get Made

18 Cognitive Bias Examples

View the high resolution version of today’s graphic by clicking here.

Out of the 188 cognitive biases that exist, there is a much narrower group of biases that has a disproportionately large effect on the ways we do business.

These are things that affect workplace culture, budget estimates, deal outcomes, and our perceived return on investments within the company.

Mental mistakes such as these can add up quickly, and can hamper any organization in reaching its full bottom line potential.

Cognitive Bias Examples

Today’s infographic from Raconteur aptly highlights 18 different cognitive bias examples that can create particularly difficult challenges for company decision-making.

The list includes biases that fall into categories such as financial, social, short term-ism, and failure to estimate:

Financial biases
These are imprecise mental shortcuts we make with numbers, such as hyperbolic discounting – the mistake of preferring a smaller, sooner payoff instead of a larger, later reward. Another classic financial cognitive bias example is the “Ostrich effect”, which is where one sticks their head in the sand, pretending that negative financial information simply doesn’t exist.

Social biases
Social biases can have a big impact on teams and company culture. For example, teams can bandwagon (when people do something because other people are doing it), and individual team members can engage in blind spot bias (viewing oneself as less biased than others). These both can lead to worse decision-making.

Short Term-isms
One way to ensure a business that doesn’t last? Engage in short term-isms – fallacies that gear your business towards decisions that can be rationalized now, but that don’t add any long-term value. Status quo bias and anchoring are two ways this can happen.

Failure to Estimate
So much about business relies on making projections about the future, and the biases in this category make it difficult to make accurate estimates. Cognitive bias examples here include the availability heuristic (just because information is available, means it must be true), and the gambler’s fallacy (future probabilities are altered by past events).

Want more on cognitive biases? Here are five main biases that impact investors, specifically.

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Maps

Mapped: The World’s Wettest and Driest Countries

From tropical rainforests to the sandy deserts of North Africa, the world’s wettest and driest countries are a study in contrasts.

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A cropped map of the wettest and driest countries in the world along with their average annual precipitation in millimeters.

Where are the World’s Wettest and Driest Countries?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

From tropical rainforest nations to the sandy deserts of North Africa and the Middle East, the world’s wettest and driest countries are a study in contrasts.

We map and rank the countries that receive the highest and lowest average annual precipitation in millimeters, per latest data from the World Bank.

Ranked: Top 10 Wettest Countries

Colombia tops the list of nations with the highest average precipitation at 3,240 millimeters (128 inches) in a year.

Its Tutunendo district is the one of the world’s wettest places, averaging nearly 12,000 mm (463 inches) of rain annually.

RankCountryAverage Annual
Precipitation (mm)
1Colombia3,240
2Sao Tome & Principe3,200
3Papua New Guinea3,142
4Solomon Islands3,028
5Panama2,928
6Costa Rica2,926
7Samoa2,880
8Malaysia2,875
9Brunei2,722
10Indonesia2,702

Note: Figures are rounded.

Off the coast of Africa however, Sao Tome & Principe is not far behind Colombia, receiving about 3,200 mm of rain in 2020.

Papua New Guinea and the Solomon Islands also average more than 3,000 mm of rain in a year, and Panama (2,928 mm) rounds out the top five.

Noticeably, all 10 countries lie in close proximity to the equator, and near oceans, where rising hot and humid air leads to abundant rainfall.

Ranked: Top 10 Driest Countries

On the other end of the scale, Egypt records the lowest average annual rainfall across all countries, at 18 mm (0.7 inches). For comparison, Colombia receives nearly 180x the amount of rain Egypt does.

RankCountryAverage Annual
Precipitation (mm)
1Egypt18
2Libya56
3Saudi Arabia59
4Qatar74
5UAE78
6Bahrain83
7Algeria89
8Mauritania92
9Jordan111
10Kuwait121

Note: Figures are rounded.

In fact, countries from North Africa and the Middle East make up the entirety of this list of the driest countries in the world.

Learn More About Rainfall From Visual Capitalist

If you enjoyed this post, be sure to check out Mapping the Unequal Distribution of Global Precipitation which divides the world into two halves: one that receives more than global average of rain (or snow), and one that receives less.

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