Rupert, who leads the design team in an automobile firm, decides not to invest in a particular technology that helps to improve the fuel efficiency of cars, as other automobile companies who had invested in similar technologies had not achieved much success. The type of decision-making error made by Rupert is known as _____.
A) availability bias
B) confirmation error
C) adjustment bias
D) lack-of-participation error
E) representativeness bias

Question

Quizplus · Accepted Answer

Rupert's decision-making error is an example of representativeness bias, as he is making a decision based on the past experiences and outcomes of other automobile companies who invested in similar technologies. He assumes that the outcome for his company will be similar to that of others, without considering other factors that may be different for his company.

Rupert, Who Leads the Design Team in an Automobile Firm