Caterpillar Collects and Analyses Large Volumes of Data About How

question 104

Multiple Choice

Caterpillar collects and analyses large volumes of data about how customers use their tractors.This permits them to ________ the cost of new product development efforts and to better ________ their products.

• A) increase; differentiate
• B) reduce; differentiate
• C) position; understand
• D) identify; disperse

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Definitions:

Sunk-cost Fallacy

The misconception that one should continue on a course of action because they have already invested resources (time, money, effort), regardless of the current and future costs.

Programmed Decisions

Decisions that are routine and repetitive, often made using predetermined rules and procedures.

False Consensus Effect

A cognitive bias whereby individuals overestimate the extent to which their beliefs, feelings, or behaviors are shared by others.

Innovation Process

A sequence of actions involving the creation, advancement, and execution of novel concepts or items.