Although there is a high rate of failure for starting new businesses, people still readily open new businesses every year. These decisions probably would not occur if people did not
A)ignore the base rate.
B)use the representative heuristic.
C)frame this event very broadly.
D)use a random search strategy for making decisions.

Question

Quizplus · Accepted Answer

Ignoring the base rate involves overlooking statistical information (like the high failure rate of new businesses) in favor of anecdotal or more specific information, which can lead to overly optimistic expectations about starting a new business.

Although There Is a High Rate of Failure for Starting