Vikram is a very successful car salesman who generates a lot of revenue for his firm. His manager is impressed with his performance and hires his younger brother as a car salesman in the firm, assuming that he will be as successful as Vikram in selling cars. However, Vikram's brother fails to live up to the expectations. The type of decision-making error made by Vikram's manager in this scenario is known as _____.
A) availability bias
B) confirmation error
C) adjustment bias
D) lack-of-participation error
E) representativeness bias

Question

Quizplus · Accepted Answer

The decision-making error made by Vikram's manager is representativeness bias. The manager assumed that Vikram's success is representative of his brother's potential success, without considering other factors such as individual differences in skills and abilities, market conditions, and customer preferences. This type of bias occurs when a person uses stereotypes or past experiences to make judgments about a current situation or person.

Vikram Is a Very Successful Car Salesman Who Generates a Lot