People tend to overweight low probabilities and underweight high probabilities.This is referred to as the ________ effect.
A) extremity
B) possibility
C) utility
D) certainty

Question

Quizplus · Accepted Answer

The phenomenon described is known as the extremity effect, which means that people tend to give excessive weight to the probability of extreme events (either very high or very low) and tend to underestimate the probability of events that are more moderate or likely. This can lead to biases in decision-making and risk assessment.

People Tend to Overweight Low Probabilities and Underweight High Probabilities