When Managers Predict That Sales for Next Year Will Be

question 17

Multiple Choice

When managers predict that sales for next year will be the same as last year,despite a weakening economy,they are

• A)using framing.
• B)using regression to the mean.
• C)using confirmation bias.
• D)ignoring the base rate.
• E)escalating commitment.

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Definitions:

Negative Reinforcement

A behavior modification technique that involves the removal of an unpleasant stimulus to increase the likelihood of a desired response.

Positive Reinforcement

Any pleasant or desirable consequence that follows a response and increases the probability that the response will be repeated.

Punishment

A consequence that reduces the likelihood of a behavior being repeated in the future.

Shaping

A method of training or teaching that involves reinforcing behaviors that are progressively closer to the desired behavior.