Cognitive Abilities Test (CAT4) Practice Exam 2025 - Free CAT4 Practice Questions and Study Guide

Anchoring bias pertains to the tendency to rely heavily on the first piece of information encountered when making decisions or judgments. This initial information acts as a reference point, or "anchor," which can skew subsequent evaluations and conclusions. For instance, if someone sees a high initial price for an item, they may perceive subsequent prices as lower or more favorable, even if those prices are still relatively high.

The other options represent different cognitive biases: the framing effect deals with how choices are influenced by the way information is presented; the availability heuristic focuses on how easily examples of a concept come to mind, impacting judgments about frequency or probability; and confirmation bias involves favoring information that confirms pre-existing beliefs while disregarding contradictory evidence. Understanding these distinctions is crucial for recognizing how our thought processes can be influenced by various cognitive biases.