The effect of the context on an individual's decision making is referred to as the
A)fallacy of composition.
B)hindsight bias.
C)framing effect.
D)conjunction fallacy.

Question

Quizplus · Accepted Answer

The framing effect refers to how the context or presentation of information can influence an individual's decision making. This effect occurs when two options are presented with the same outcome, but one option is framed as a gain while the other is framed as a loss. The way the information is framed can impact an individual's decision even though the outcome is the same.

The Effect of the Context on an Individual's Decision Making