The marketing department of a major children's hospital is hosting a fund-raiser for the local Ronald McDonald House. In the past, fund-raisers were successful when scheduled in the spring. This year, the fund-raiser is scheduled in the fall, when the city and several local organizations have community festivals. The first fund-raiser was scheduled 10 years ago in the fall and raised $50,000, only one eighth of the goal. This depicts an example of which of the following decision-making distortions?

Question

Quizplus · Accepted Answer

The situation describes an estimating and forecasting trap, where the decision-makers are relying on past data (the unsuccessful fall fundraiser) to predict future outcomes without considering changes in circumstances or new information.

The Marketing Department of a Major Children's Hospital Is Hosting