The Bandwagon Effect, a Common Decision-Making Bias, Is ________

question 3

Multiple Choice

The bandwagon effect, a common decision-making bias, is ________.

• A) the characteristic of an individual who prefers to avoid losses rather than acquire gains
• B) the tendency to believe certain outcomes because others believe the same
• C) the tendency to believe that our forecasts are better than they truly are
• D) the tendency to search for information that supports one's preconceived beliefs
• E) an individual's tendency to believe that he/she is less susceptible to risky events

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Definitions:

Compensation System

The overall structure and methodology an organization uses to compensate its employees, including wages, salaries, benefits, and incentives.

Central Tendency

A statistical measure that identifies the center of a data distribution, commonly represented by the mean, median, or mode.

Extreme Values

Data points in a set that significantly deviate from the rest, often used in statistical analyses to identify outliers or anomalies.

Higher Hierarchy

The upper levels within an organizational structure, typically involving roles with greater authority and responsibility.