Rajiv Was Asked to Prepare a Report on the Estimated

question 58

Multiple Choice

Rajiv was asked to prepare a report on the estimated costs of introducing a new product into the market. He estimated the costs by slightly increasing 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

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Definitions:

Reverse Logistics

The process of moving goods from their typical final destination back to the manufacturer or distributor for returns, repairs, or recycling.

Recycles

The process of converting waste materials into new materials and objects.

Reusable Materials

Items that can be used multiple times for the same or a new purpose, reducing waste and promoting sustainability.

Outdated Computers

Computers that have become obsolete due to advances in technology or software.