Or if a robbery occurred and among the suspects was a black person, what is the likelihood of people accusing him of the offence. Very high, we would say. This is because of availability and stereotypical connection between people of minorities and crime. In this heuristic again, five kinds of errors or biases can emerge:
1. Some errors are purely theoretical in nature. The two events may not be as related to each other as were initially assumed. For example all Muslims with beard are not fanatic or extremists but there is a likelihood that these two would go together in a person's mind.
2. People with show insensitivity to previous results. They may fail to take into account prior probability outcomes and instead rely on their own judgment based on representative-ness.
3. No attention to the size of the group examined. In other words, people tend to foget about sample sizes. They feel that a result that was true for a group of 50 would also be true for a group of 500 and this can lead to errors in judgment.
4. Inability to understand the role of chance. Tversky and Kahneman maintain that, "people expect that a sequence of events generated by a random process will represent the essential characteristics of that process even when the sequence is short"
5. Misconceptions about regression and their role in the judgment process. People may often be so heavily influenced by representative-ness that they may forget law of regression completely. Hence people "do not expect regression in many contexts where it is bound to occur... (and) when they recognize the occurrence of regression, they often invent spurious causal explanations for it"
The third heuristic of anchoring comes into play when adjustment or estimates are being calculated. When a person is to depend on calculation of probabilities or assigning of the same, they may not...
Results from the study by Petersen, Ragatz and Monczka show that effective collaborative planning depends on information quality, and the trust level firms share. The authors purport: "Collaborative planning activities between supply chain partners are expected to lead to better performing supply chains" (Petersen, Ragatz & Monczka, Introduction section ¶ 1). In addition, numerous other researchers have also explored the perception relating to supplier alliances, that enhanced collaborative planning
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