Jamey was asked to prepare a report on the estimated costs of introducing a new product into the market.He suggested the costs by slightly incrementing the costs the company had incurred while introducing a product into the market the previous year.This might not be accurate,because a number of other factors should also have been considered while calculating the estimated costs for the current year.This type of decision-making error is known as ________.
A)availability bias
B)confirmation error
C)representativeness bias
D)anchoring and adjustment bias
E)lack-of-participation error

Question

Quizplus · Accepted Answer

The decision-making error described is anchoring and adjustment bias, which is the tendency to rely too heavily on the first available piece of information (the costs from the previous year) and adjusting insufficiently from that anchor when making decisions.

Jamey Was Asked to Prepare a Report on the Estimated