performance evaluate measure

2. Imagine that you are trying to set a value on an antique chair that you have inherited from a distant aunt. You recall seeing a similar chair in slightly better condition at a local antique dealer and start the estimation with the price of that chair. Explain the most relevant heuristic of this phenomenon. What can you do to make the heuristic less of a concern? (6 marks) Solution: Anchoring heuristics - using the value of a similar object as a starting point (reference) for estimation. (3 marks) Remedy: (3 marks) o Incorporate an adjustment for the difference between the two chairs. O If the adjustment is absent, likely to overestimate the value of the chair