Rupert, Who Leads the Design Team in an Automobile Firm

question 70

Multiple Choice

Rupert, who leads the design team in an automobile firm, decides not to invest in a particular technology that helps to improve the fuel efficiency of cars, as other automobile companies who had invested in similar technologies had not achieved much success. The type of decision-making error made by Rupert is known as _____.

• A) availability bias
• B) confirmation error
• C) adjustment bias
• D) lack-of-participation error
• E) representativeness bias

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Definitions:

Consensus

A form of collective agreement where all members of a group support a decision even if it may not be their first choice, ensuring that everyone's opinion is considered.

Self-Serving Bias

is the common human tendency to attribute positive outcomes to one's own character or behaviors but blame outside factors for negative outcomes.

Fundamental Attribution Error

A psychological bias where people tend to attribute others' behavior too much to internal or personal factors and too little to situational factors.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.