Why is the concept of base rate important in decisions that involve the representativeness heuristic?
a. People usually don't pay enough attention to base rate when making these decisions.
b. People are so aware of information about base rate that they typically make accurate decisions.
c. People rarely make the small-sample fallacy when making these decisions.
d. When people have a background in statistics, they are much more likely to make correct decisions on tasks involving the representativeness heuristic.
Question 2
Suppose that you hear about a friend who graduated from your college in performing arts. In addition, suppose that you judge that she is more likely to be selling insurance and active in community theater than she is to be selling insurance.
You have committed
a. the anchoring and adjustment heuristic.
b. the crystal-ball technique.
c. the belief-bias effect.
d. the conjunction fallacy.
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