When managers treat irrelevant information as if it were relevant, they exhibit:
A)contrast effect
B)context effect
C)pseudodiagnosticity effect
D)assimilation effect
E)anchoring-and-adjustment effect

Question

Quizplus · Accepted Answer

The pseudodiagnosticity effect refers to the tendency to rely on information that is irrelevant to a decision but which appears to be useful or diagnostic. This can lead to errors in decision-making, as managers may focus on information that is not actually helpful in assessing a situation or making a choice.

When Managers Treat Irrelevant Information as If It Were Relevant