A. Judgment Heuristics
Definition: Rule of thumb; quick decision guide
When are heuristics used?
- When making intuitive judgments about relative likelihoods (e.g., “business gambles”).
1. Will Mr. Jones or Ms. Smith be a better marketing VP?
2. Will a non-sugar coated cereal sell better than the usual breakfast fare?
3. How likely is it that next year’s unemployment rate will exceed 8%?