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Question

The propensity of a decision maker to be influenced by the manner in which the information is presented to him/her is known as ________

A Commitment bias Correct Answer Incorrect Answer
B Confirmation bias Correct Answer Incorrect Answer
C Hindsight bias Correct Answer Incorrect Answer
D Framing bias Correct Answer Incorrect Answer
E Anchoring bias Correct Answer Incorrect Answer

Solution

Framing effect is an example of cognitive bias, in which people react to a particular choice in different ways depending on how it is presented. For example, a salesperson promoting a product would much rather claim ‘85% of customers were satisfied with the product’ than admit ‘15% of customers were dissatisfied’. But the two statistics actually convey the same information.

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