Which of the following characteristics are referred to as representativeness?
I. hesitating to sell stocks at a loss
II. basing conclusions on small samples
III. underestimating the effects of random chance
IV. underestimating the level of risk in an investment
A) I and IV only
B) II and III only
C) I, II and III only
D) I, II, III and IV only

Question

Quizplus · Accepted Answer

Representativeness involves basing conclusions on small samples (II) and underestimating the effects of random chance (III), which are cognitive biases in decision-making.

Which of the Following Characteristics Are Referred to as Representativeness