You recently overheard your boss telling someone that if he'd actually crunched some numbers and done some analysis instead of just going with his instincts that he never would have opened the new store in Centre City. Which one of the following caused your boss to make a bad decision?
A) Regret aversion.
B) Endowment effect.
C) Money illusion.
D) Affect heuristic.
E) Representativeness heuristic.

Question

Quizplus · Accepted Answer

The affect heuristic is when decisions are influenced by emotions rather than by a thorough analysis of the available information. In this case, your boss made a decision based on instinct (an emotional response) rather than conducting a detailed analysis, which led to a poor decision.

You Recently Overheard Your Boss Telling Someone That If He'd