Apply the three heuristics to the decision-making process.
What will be an ideal response?
Availability heuristics allow us to make judgments based on examples and events
that are available and immediately spring to mind.
Sometimes, we can make incorrect judgments about certain issues because of our
reliance on information that is more readily available to us.
Anchoring and adjustment heuristics is the tendency to over-rely on initial information
while overlooking other important criteria, which can lead us to base decisions on the
first piece of information and then adjust it, leading to anchoring bias.
Representativeness heuristic is when we base a decision on our existing mental
prototype and similar representative stereotypes
You might also like to view...
If a corporation has issued common stock at various prices that exceed par value, legal capital will be made up of the
A) par value of the shares issued. B) total stockholders' equity plus total liabilities. C) total amount of contributed capital. D) total amount of contributed capital plus retained earnings.
Which of the following conditions does NOT need to be met in order for a team to be productive?
A) Commitment to goals on the part of the team and senior management B) Opportunity for teamwork as created by senior management or other individuals C) Clarity of goals as provided or developed by the team D) Lack of challenges from customers and competitors
A static budget:
a. should be compared to actual costs to assess how costs were controlled. b. should be compared to a flexible budget to assess how costs were controlled. c. is the best way to display spending standards. d. is valid for only one level of activity. e. All of the answers are correct.
Pretexting is a form of social engineering in which one individual lies to obtain confidential data about another individual.
Answer the following statement true (T) or false (F)