You started an online business three weeks ago. Thus far, you have averaged 10 sales a day, which is one sale for every ﬁve hits. You are now considering giving up your day job and becoming a full-
Time online retailer. You have calculated the amount of income you can earn based on 10 sales a
Day and know that level of income would support you in a comfortable fashion. The belief that you
Will have 10 sales per day on average if this becomes your full-time occupation is based on which
One of the following?
A) Mental accounting.
B) Anchoring and adjustment.
C) Law of small numbers.
D) Bubble and crash theory.
E) Conﬁrmation bias.

Question

Quizplus · Accepted Answer

The belief that you will have 10 sales per day based on the past three weeks' data is an example of the law of small numbers, which states that people tend to place too much weight on small samples or limited experiences when making predictions or judgments. It is not anchored to any particular reference point (anchoring and adjustment) or biased by a specific mindset (mental accounting, confirmation bias) or theory (bubble and crash theory).

You Started an Online Business Three Weeks Ago