Janet needs to make an important decision about managing her business. As she thinks about the situation,she quickly recalls a similar situation in a friend's business. Because she thinks the friend's situation and hers are similar,she decides to take the same action that her friend did;to use her friend's actions as simple rules to help her through the complicated decision. Unfortunately,Janet is not aware that there was another major factor in her friend's situation that influenced the decision heavily. Which of the following best describes what Janet is using in this situation?
A) Illusion of control.
B) Planning fallacy.
C) Confirmation bias.
D) Signal Detection Theory.
E) Availability heuristic.

Question

Quizplus · Accepted Answer

Janet is using the availability heuristic, where she is relying on the information that is most readily available to her (her friend's situation) to make her decision. However, she is not considering other important factors that may have influenced her friend's decision.

Janet Needs to Make an Important Decision About Managing Her