When Managers Predict That Sales for Next Year Will Be

question 17

Multiple Choice

When managers predict that sales for next year will be the same as last year,despite a weakening economy,they are

• A)using framing.
• B)using regression to the mean.
• C)using confirmation bias.
• D)ignoring the base rate.
• E)escalating commitment.

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Definitions:

Seismographs

Instruments that measure and record details of earthquakes, such as force and duration, by detecting ground motion.

Tsunami

Enormously long oceanic waves generated by major events like quakes, volcano eruptions, or subaquatic landslides.

P-Wave

A type of seismic wave that compresses and expands material in the direction it is traveling, and is the fastest kind of seismic wave.

Rogue Wave

A large, unexpected, and suddenly appearing surface wave that can be extremely dangerous, even to large ships.