Word-of-mouth communication is powerful because we tend to have confidence that the opinions of friends or relatives are more reflective of the majority than they may be. This is an example of:
A) the size distortion bias.
B) the extrapolation bias.
C) the infrequency bias.
D) the law of averages.
E) the law of small numbers.

Question

Quizplus · Accepted Answer

The given scenario is an example of the law of small numbers, which refers to the tendency to make generalizations based on a small number of observations or experiences. In this case, we are relying on the opinions of a few people to represent the broader population, which may not always be accurate.

Word-Of-Mouth Communication Is Powerful Because We Tend to Have Confidence