You Are Part of a Group Making a Decision About

question 26

Multiple Choice

You are part of a group making a decision about whether it is appropriate to discontinue research on a new drug. This new drug would save lives, but it is uncertain whether you can develop it within a reasonable time frame and at a reasonable cost. Your firm has already spent a small fortune on this drug. You have gathered so much information in preparation to making the decision that you are unable to sort the good information from the superfluous data. Well after you have started trying to make a decision, new information comes to light that implies that the drug may be able to be synthesized much more cheaply than was previously thought.
-The group later learns that the drug will be very expensive to manufacture, but the group decides to continue the project so that all the resources already spent on it will not have been wasted. In this case the group has done which of the following?

• A) used the availability bias
• B) used the anchoring bias
• C) made an escalation of commitment
• D) satisficed
• E) made the ultimate attribution error

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Definitions:

Large Abdomen

A condition where the belly is unusually enlarged or distended, potentially indicative of diseases, obesity, or fluid accumulation.

Thin Skin

A term often used to describe sensitive skin or a person who is easily upset or offended by what other people say about them.

ACTH

Adrenocorticotropic hormone, a pituitary hormone that stimulates the production of cortisol by the adrenal glands.

Adrenal Cortex

The outer portion of the adrenal gland that produces essential hormones like cortisol and aldosterone.