Ernest Studied the Frequency of Repair Records for Several Makes

question 93

Multiple Choice

Ernest studied the frequency of repair records for several makes of cars he was thinking of buying. He was about to buy a Volvo when his brother told him that two of their friends had a lot of repairs on their Volvos and were unhappy with the cars. On the basis of this information, Ernest reconsidered his decision. Which rule of thumb may have been responsible for Ernest's change of mind?

• A)representativeness heuristic
• B)emotionality heuristic
• C)deductive reasoning
• D)availability heuristic

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Definitions:

Market Baskets

A collection of goods and services used as a standard way of tracking the cost of living or inflation over time.

Preferences

In economics, this refers to the ordering of alternatives based on their utility, showing the subjective tastes and choices of individuals.

Complete

Fully accomplished or having all necessary parts or steps.

Transitivity

Transitivity in decision making refers to the consistency among choices, where if option A is preferred over B and B over C, then A should be preferred over C.