New RBI Grade B Notification Out - 94 Vacancies - Prepare with Us!

    Register

    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.

    Practice Next

    Relevant for Exams: