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Verdich [7]
2 years ago
15

When asked to guess whether Mark is from Montana or California, you guess California because more people live in California. You

have used __________ in making your decision.
Social Studies
1 answer:
zmey [24]2 years ago
7 0

When asked to guess whether Mark is from Montana or California, you guess California because more people live in California. You have used "base rate information" in making your decision.

<h3>What is Base Rate in Psychology?</h3>

Base rate is the frequency of a phenomenon that naturally occurs in a population. Using base rate information, rational decisions are made taking into account the general occurrence in a larger population in favour of the specific incidence in a particular case.

Effects of base rate information are-

  • Base rate fallacy, as used in behavioural finance, is the propensity for people to incorrectly assess the likelihood of a situation by ignoring all pertinent information.
  • Investors may instead place a greater emphasis on recent information without taking into account how this affects their initial hypotheses.

To know more about the characteristics of an annual percentage rate, here

brainly.com/question/11686424

#SPJ4

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