Advising managers to be sensitive to new information and to revise prior judgments in light of new information reduces the effects of which of the following heuristics?
A)Representativeness heuristic
B)Availability heuristic
C)Simulation heuristic
D)Anchoring-and-adjustment heuristic
E)Confrrmation bias

Question

Quizplus · Accepted Answer

Advising managers to be sensitive to new information and to revise prior judgments in light of new information specifically addresses the anchoring-and-adjustment heuristic. This heuristic involves making decisions based on adjustments from an initial starting point (anchor), and being open to new information helps in making more accurate adjustments away from that anchor.

Advising Managers to Be Sensitive to New Information and to Revise