You recently overheard your boss telling someone that if he'd actually crunched some numbers and done some analysis instead of just going with his instincts that he never would have opened the
New store in Centre City. Which one of the following caused your boss to make a bad decision?
A) Regret aversion.
B) Endowment effect.
C) Money illusion.
D) Affect heuristic.
E) Representativeness heuristic.

Question

Quizplus · Accepted Answer

The affect heuristic is the tendency to rely on emotions or impressions when making decisions, rather than analyzing the facts and data. In this case, it appears that the boss went with his gut instinct instead of doing a proper analysis of the numbers, leading to a bad decision to open the new store.

You Recently Overheard Your Boss Telling Someone That If He'd