The Conjunction Fallacy Is a Tendency to

question 61

Multiple Choice

The conjunction fallacy is a tendency to

• A) ignore information about base rates when estimating the probabilities of certain combinations of outcomes.
• B) overestimate the odds of a chance event if that event hasn't occurred recently.
• C) draw general conclusions based on a few isolated cases.
• D) believe that the odds of two uncertain events happening together are greater than the odds of either event happening alone.

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Definitions:

Strategic Decision

A choice made by a company's top management about the direction and scope of the organization, often having long-term effects.

Layout Design

Layout Design refers to the arrangement of physical facilities such as machinery, equipment, and furniture within a workspace to optimize workflow and productivity.

Maintenance

The activities involved in keeping a system’s equipment in working order.

Quick Response

A strategy aimed at reducing lead times within the production and distribution systems to improve service levels and reduce costs.