The Tendency to Base Decisions on Information Readily Available in Memory

question 41

Multiple Choice

The tendency to base decisions on information readily available in memory is called

• A) bounded reality
• B) availability heuristic
• C) representative heuristic
• D) judgmental heuristic
• E) reality heuristic

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Definitions:

Control Limits

Boundaries set in control charts that represent the threshold at which a process is considered to be in control or out of control.

Sigma

A symbol (σ) representing the standard deviation of a population in statistics.

Pooled Standard Deviation

Pooled Standard Deviation is a method to estimate the standard deviation from several different samples having different sizes, assuming they come from the same population.

Sample Means

The average value of a set of observations drawn from a population.