Question

An example of the application of the __________ is the executive who makes salary increase recommendations for key personnel by simply adjusting their current base salaries by a percentage amount.
A. availability heuristic
B. equivalence heuristic
C. incremental change heuristic
D. representativeness heuristic
E. anchoring and adjustment heuristic

Answer 1

Answer:

The correct answer is letter "E": anchoring and adjustment heuristic.

Explanation:

Anchoring-and-Adjustment heuristics refers to estimations made by individuals according to certain information that come to their minds that are adjusted until an acceptable level of accuracy is reached. The latter is the cause of this practice to be inefficient because it is based on finding one optimal level of accuracy only without looking for others that could provide more proper results.