According to the text, one important economic application of the anchoring and adjustment bias is
A)to estimate production costs of simple operations.
B)to evaluate consumer behavior with regard to luxury spending.
C)to increase productivity in volunteer organizations.
D)in estimating the failure rates of complex projects.

Question

Quizplus · Accepted Answer

The text mentions that the anchoring and adjustment bias is commonly used in estimating the failure rates of complex projects, which is an important economic application because it allows organizations to better allocate resources and make informed decisions about whether to pursue risky projects. The other options are not mentioned in the text as specific applications of the bias.

According to the Text, One Important Economic Application of the Anchoring