Camille and Priya are talking over coffee. Camille mentions that she is considering spending a semester studying abroad in France. Priya studied abroad for a semester in Germany two years ago, and during that time her cost of living (not counting tuition)was about $5,000. Priya tells Camille that a semester abroad in France will probably cost her around $5,000, not counting tuition. Priya's comment demonstrates: A)biased expectations. B)anchoring. C)a guess with loose information. D)All of these are true.

Question

Quizplus · Accepted Answer

B) Priya is using her own experience in Germany to estimate the cost for Camille in France, which is an example of anchoring. This is a cognitive bias where an individual relies too heavily on an initial piece of information (in this case, Priya's own expenses in Germany) to make subsequent judgments or decisions.

Camille and Priya Are Talking Over Coffee