SCENARIO 12-1 You Are Making a Decision Whether to Discontinue

question 51

Multiple Choice

SCENARIO 12-1 You are making a decision whether to discontinue research on a new drug.This new drug would save lives,but it is uncertain whether it can be developed 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 for making the decision that you are unable to sort the good information from the superfluous.
-Refer to Scenario 12-1.You decide to spend more money on the project,even though you believe it to be improbable that you will succeed.You are guilty of

• A)availability heuristic.
• B)representative heuristic.
• C)escalation of commitment.
• D)satisficing.
• E)ignoring the base rate.

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Definitions:

Ethnic Group

A community or population made up of people who share a common cultural background or descent.

Single-parent Home

A household where a child or children live with only one of their parents due to various circumstances such as divorce, death, or single parenthood by choice.

Positive Emotional Regulation

The process of managing one's emotional reactions in a healthy way to maintain a state of emotional well-being.

Securely Attached

Describes individuals, typically infants or young children, who have formed healthy emotional bonds with their caregivers, showing confidence in exploration.