The concept of heuristics means a rule-of-thumb strategy or good guide to follow in order to shorten the time it takes to make a decision. Psychology literature tells us that heuristics can lead to systematic biases in decision making, what psychologists refer to as cognitive biases. In the context of finance, these biases lead to errors in making ________.

Question

Quizplus · Accepted Answer

The passage states that heuristics can lead to biases in decision making, specifically in the context of finance. Therefore, the errors in decision making referred to in the passage are related to investment decisions, not accounting or psychological decisions.

The Concept of Heuristics Means a Rule-Of-Thumb Strategy or Good