A Manager Who Helped Develop a New Product That Looks

question 24

Multiple Choice

A manager who helped develop a new product that looks like it would be successful predicted a 90% chance of success for the new product.However, historical data indicate that of all new products introduced, only about 50% succeed.This suggests that the manager's prediction was guided primarily by the:

• A)representativeness heuristic
• B)availability heuristic
• C)simulation heuristic
• D)anchoring-and-adjustment heuristic
• E)contrast effect

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Definitions:

Mandatory Payroll Deductions

Compulsory deductions from an employee's paycheck by the employer, covering taxes, social security, and other legally required withdrawals.

Voluntary Deductions

Amounts that a person chooses to have withheld from their paycheck, such as contributions to retirement plans or health insurance premiums.

Payroll Expenses

Costs associated with compensating employees, including wages, salaries, bonuses, and related taxes and benefits.

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been subtracted.