Risky Decision Making Involves Making a Tradeoff Between the Desirability

question 1

Multiple Choice

Risky decision making involves making a tradeoff between the desirability and the likelihood of an outcome. However, managers often focus mainly on desirability in some situations, and focus mainly on likelihood in others.This results in inconsistent preferences.Which heuristic is responsible for this bias?

• A)The representativeness heuristic
• B)The availability heuristic
• C)The simulation heuristic
• D)The anchoring-and-adjustment heuristic
• E)Correspondence bias

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