Word-of-mouth communication is powerful because we tend to have confidence that the opinions of friends or relatives are more reflective of the majority than they may be.This is an example of
A) size distortion.
B) the extrapolation bias.
C) the infrequency bias.
D) sample error.
E) the law of small numbers.

Question

Quizplus · Accepted Answer

This is an example of the Law of Small Numbers, which is the tendency to draw sweeping conclusions based on small sample sizes. The confidence in the opinions of friends and relatives may not always be reflective of the majority, but we assume that it is because it is based on a small, familiar group of people we trust.

Word-Of-Mouth Communication Is Powerful Because We Tend to Have Confidence