In a Decision-Making Problem, Anchoring Effects Occur When

question 16

Multiple Choice

In a decision-making problem, anchoring effects occur when

• A) decision makers are tied too closely to previous decisions.
• B) organizations refuse to consider new alternatives.
• C) a seemingly trivial factor serves as a starting point for estimations.
• D) a person in a position of authority exerts his or her opinion very forcefully.

---

Definitions:

Fluctuations

Variations or changes in level, intensity, or value, typically describing economic indicators like prices, rates, or stock market activities.

Government Purchase

Expenditures by the government on goods and services that are part of the country's Gross Domestic Product (GDP).

Military Aircrafts

Military aircrafts are aircrafts used by the armed forces of countries for defense, attack, and transport purposes, including fighters, bombers, and transport planes.

Interstate Highway

A network of controlled-access highways that form part of the National Highway System in the United States.