Rajiv Was Asked to Prepare a Report on the Estimated

Multiple Choice

Rajiv was asked to prepare a report on the estimated costs of introducing a new product into the market. He estimated the costs by slightly increasing the costs the company had incurred while introducing a product into the market the previous year. This might not be accurate, because a number of other factors should also have been considered while calculating the estimated costs for the current year. This type of decision-making error is known as _____.

A) availability bias
B) confirmation error
C) representativeness bias
D) anchoring and adjustment bias
E) lack-of-participation error