A comprehensive research study has revealed that a local car dealer offers the best prices on cars.Your best friend just told you that the car he purchased at the local dealer was overpriced.As a consequence,you decide to buy your car from an out-of-town dealer.This decision is an example of which of the following systematic mistakes that people make when making decisions?
A)People are overconfident.
B)People give too much weight to a small number of vivid observations.
C)People are reluctant to change their minds.
D)All of the above.

Question

Quizplus · Accepted Answer

This decision is an example of the systematic mistake where people give too much weight to a small number of vivid observations, in this case, the personal experience of the friend who bought a car from the local dealer. The comprehensive research study would have provided a more accurate picture of the best prices, but the personal experience of the friend may have influenced the decision-making process.

A Comprehensive Research Study Has Revealed That a Local Car