Anchoring and adjustment bias occur when individuals react to arbitrary or irrelevant numbers when setting financial or other numerical targets.

Question

Quizplus · Accepted Answer

Anchoring and adjustment bias is a cognitive bias where individuals rely too heavily on an initial piece of information (the "anchor") when making decisions, even if it is arbitrary or irrelevant, leading to skewed judgments or estimates.

Anchoring and Adjustment Bias Occur When Individuals React to Arbitrary