Insurance companies avoid errors due to _____ by calculating and analyzing base rates for accidents, age-related diseases, etc.

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The representative heuristic refers to the tendency to make judgments or solve problems based on how well they seem to match particular prototypes or stereotypes. Insurance companies use base rates that represent typical accidents, age-related diseases, etc. to avoid errors in their calculations.

Insurance Companies Avoid Errors Due to _____ by Calculating and Analyzing