Occurrence Assessment Probability Recall thoughts Similarities.

2. Decision Making Biases & Errors

4. Definition:
“It means the managers assess the likelihood
of an event based on its closeness to the
other events, it is called Representation Bias”

5.  Occurrence
 Assessment
 Probability
 Recall thoughts
 Similarities.

6. Representation bias occurs through memory
recall. When a decision maker has to analyze the
options of a decision, he tends to recall a
memory or experience that is similar to the
present decision-making situation. In the
representative heuristic we compare the similarity
of two objects and assume that one is like the
other (Aronson, 1999).

7.  The representativeness heuristic argues that
people see commonality between items or
people of similar appearance, or between an
object and a group it appears to be a part of.

8.  If I meet three people from a company and they are
all aggressive, I will assume that the company has
an aggressive culture and that most other people
from that firm will also be aggressive.
 whenever we see a beggar, he or she must be poor,
that’s our first thought. However, there are cases
where some of them live in big houses!
 Another example, bad drivers – if you see a bad
driver, it must be a lady! So all these are
stereotyping!

9. According to above said discussion I can
conclude that people use the representative
heuristic to make judgments or form
impressions about someone or something.