In an Experiment, Participants Were Told of a Previously Unknown

question 49

Multiple Choice

In an experiment, participants were told of a previously unknown tribe living on a Pacific island. Only one member of this tribe had been observed so far, and he was found to be obese. When asked how likely it was that all members of the tribe were obese, participants were unwilling to extrapolate this information. This shows that participants

• A) were using the representative heuristic.
• B) had prior beliefs about these islanders.
• C) are sometimes sensitive to the sample size and can take this into account when making a judgment.
• D) are unwilling to make a judgment as they are wary of making an error.

Understand the concept of the product life cycle and its stages.

Recognize how personal hobbies, work experience, or serendipity can lead to business ideas.

Identify the corridor principle and its significance in expanding business opportunities.

Comprehend the importance of research, intuition, and personal experience in evaluating business opportunities.

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how much one thing resembles another.

Creating Subgoals

The strategy of breaking down a goal into smaller, more manageable tasks or objectives that are easier to achieve step by step.

Using Algorithms

The practice of applying a step-by-step procedure or formula for solving problems or performing tasks.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.