The last time the Whigs took over Congress, stock prices rose dramatically and unemployment fell to record lows. Once again, the Whigs are in power, so Jason expects his stock portfolio to grow significantly. Jason's thinking may be influenced by the ________.
A) representation bias
B) selective perception bias
C) randomness bias
D) anchoring effect

Question

Quizplus · Accepted Answer

Jason's thinking is influenced by the representation bias, which occurs when people make judgments about the probability of an event under uncertainty based on how much one event resembles another event. In this case, Jason expects the same economic outcomes based on the Whigs being in power again, assuming that the situation is representative of the past without considering other factors that could influence the outcome.

The Last Time the Whigs Took Over Congress, Stock Prices