Kay based the forecasted sales figure of the new product on last year's sales figures from a previous product. Kay is engaging in which of the following?
A)optimal decision making
B)escalation of commitment
C)availability heuristic
D)representative heuristic

Question

Quizplus · Accepted Answer

Kay is using the representative heuristic by basing the forecast on the similarity between the new product and a previous product, assuming the new product will perform similarly.

Kay Based the Forecasted Sales Figure of the New Product