behavioral biases EOC Q11

Apologies if this has already been discussed.

Q - Which one of the following biases did Jordan not demonstrate?

A - Representativeness. “Jordan is not relating the certainty about the future or her decision to hold losing positions back to something she has done or experienced in the past.”

However, the information given says “she reassures the team that this strategy has performed well in the past…” Am I missing something, or is this the exact definition of representativeness bias?

These behavioral questions are very tricky. An example of the representativeness bias would be where you take an observation as representative of the entire population. For example, one guy in a yellow tie and suspenders is a douche, so you think all such attired guys are douches. Or a company performed well under a certain CEO, who moves to a new company so you think the stock of that company will also out-perform.

definitions: IF-THEN or stereotype heuristic.

base rate neglect - neglect to consider the probability that the information fits the category into which it has been placed.

Sample size neglect - derive more information than is reasonable from the sample size; place more weight on the new information than is justified by the sample size.

so to answer your question, based on jordan’s reassurance that the strategy has performed well in the past, she’s not really placing more weight on new information or trying a new strategy assuming that it will perform well because of some assumed carryover from a different strategy. in your case, i’d say that the best answer might be status quo bias or perhaps availability bias