How Reasonable Is It for Someone to Rely on the Representativeness

question 76

Multiple Choice

How reasonable is it for someone to rely on the representativeness heuristic to make a quick judgment?

• A) Not reasonable at all-it is usually misleading
• B) Often perfectly reasonable, when there is no other information available
• C) Reasonable, when there is base rate information to refer to
• D) Somewhat reasonable, but only if you put considerable thought into it first

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Definitions:

Joint Production Cost

Costs incurred in the process of producing multiple products simultaneously from the same raw materials or process.

Grinding Machine Time

The amount of time a grinding machine is used during the production process, often considered in cost calculations for products requiring such processing.

Satisfy Demand

The ability of a company or market to meet the consumer demand for goods or services, either through current supply or production capacity.

Constrained Resource

A factor that limits the output of a process or the achievement of organizational goals, often critical in determining maximum production or service levels.