ccurs when individuals react to arbitrary or irrelevant numbers when setting financial or other numerical targets. For example, it is tempting for college graduates to compare their starting salaries at their first career job to the wages earned at jobs used to fund school. A. Anchoring and adjustment bias B. Overconfidence bias C. Hindsight bias D. Availability bias

Question

Sebastian Boyd

Social Studies

2 February, 09:47

ccurs when individuals react to arbitrary or irrelevant numbers when setting financial or other numerical targets. For example, it is tempting for college graduates to compare their starting salaries at their first career job to the wages earned at jobs used to fund school. A. Anchoring and adjustment bias B. Overconfidence bias C. Hindsight bias D. Availability bias

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Answers (1)

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William Obrien · Answer 1

The correct option is A.

Explanation:

Anchoring and adjustment bias describes the process by which a prominent but irrelevant numerical figure is presented to individuals before they make a final estimate. In other words, when a person is faced with a source of information, of whatever nature, the data presented at the beginning are "anchored" in the person's memory with much more force than later ones. The usual result evidenced by this phenomenon is the significant influence that the anchor has on the final estimates.