You started an online business three weeks ago.Thus far,you have averaged 10 sales a day,which is one sale for every five hits.You are now considering giving up your day job and becoming a full-time online retailer.You have calculated the amount of income you can earn based on 10 sales a day and know that level of income would support you in a comfortable fashion.The belief that you will have 10 sales per day on average if this becomes your full-time occupation is based on which one of the following?
A)mental accounting
B)anchoring and adjustment
C)law of small numbers
D)bubble and crash theory
E)confirmation bias

Question

Quizplus · Accepted Answer

The belief that you will have 10 sales per day on average if this becomes your full-time occupation is based on the law of small numbers. This is an example of assuming that a small sample size (three weeks of sales) is representative of a larger population (future sales if you become a full-time online retailer). It is important to gather more data and analyze trends before making such a big decision.

You Started an Online Business Three Weeks Ago