Having just spent $1500 for a new engine for his old car, Raimndo now learns his transmission needs to be replaced. Raimundo decides to junk the car. Raimundo has avoided continuing the______ bias.
I am in a toss up of either (b)adjustment or (c) availability. Others to choose from are (a) anchoring and (d) escalation of Commitment.
Help! I'm not sure about the answer
this question.
Would the be (b) adjustment or (c) availability. Not sure.
To determine the answer to this question, we need to understand what each bias refers to and how it relates to Raimundo's situation.
(a) Anchoring bias: This bias occurs when someone relies too heavily on the first piece of information they encounter when making a decision. In Raimundo's case, there is no indication that he relied on the initial cost of the new engine when deciding to junk the car. He seems to have considered the transmission issue separately.
(b) Adjustment bias: This bias refers to insufficiently adjusting one's estimates or judgments based on new information. In Raimundo's situation, he did adjust his decision after considering the transmission issue. However, this bias would not be avoided by junking the car, as it pertains to the decision-making process itself.
(c) Availability bias: This bias happens when someone overestimates the importance or likelihood of information that is easy to recall. In this case, Raimundo hears about the transmission problem after spending money on a new engine. However, we are not provided with any additional information to determine if Raimundo was swayed by this easily recalled transmission issue.
(d) Escalation of commitment bias: This bias occurs when someone continues to invest resources (e.g., time, money) in a failing course of action. Raimundo seems to avoid this bias by deciding to junk the car after realizing the transmission needs replacement, rather than continuing to invest more money in repairs.
Based on this analysis, it appears that the most appropriate answer would be (d) Escalation of Commitment. By deciding to junk the car after the transmission issue arose, Raimundo avoids the bias of continuing to invest in a failing course of action.