In cognitive psychology, an anchoring bias occurs when you focus on which of the following when making decisions?

• A. All available information equally
• B. The first piece of information encountered
• C. The most recent information only
• D. Randomly selected information

Answer: (B)

Verified step by step guidance

1. Understand the concept of anchoring bias in cognitive psychology, which refers to the tendency to rely heavily on the first piece of information encountered when making decisions.
2. Recognize that anchoring bias causes individuals to give disproportionate weight to initial information, even if subsequent information is available.
3. Compare the options given: 'All available information equally', 'The first piece of information encountered', 'The most recent information only', and 'Randomly selected information'.
4. Identify that anchoring bias specifically involves focusing on the first piece of information rather than all information or the most recent or random information.
5. Conclude that the correct understanding of anchoring bias is that it occurs when you focus on the first piece of information encountered during decision-making.