12. One consequence of the ‘representativeness heuristic’ is a tendency to make mistakes in judgment due to… a. paying too much attention to vivid information b. not understanding the idea of ‘reversion to the mean’ c. being risk-averse in the domain of losses d. using mental stereotypes to characterize people e. being risk-seeking in the domain of gains f. forgetfulness

Answer: Option (D) – Using mental stereotypes to characterize people
Explanation: Representativeness heuristic relies too much on stereotypes and prototypes. We, human beings, have a tendency of generalizing and stereotyping things and people. It is because of our pre-conceived notions about a particular set of people or gender or community, we tend to make mistakes. For example, We have an image in our minds of how intelligent or nerdy people should look like. They should be neatly dressed, hairs should be well combed, should wear spectacles, etc. Anyone who does not conform to our mind-made notions, we disregard or discard them from belonging to that category of people or community. This is the consequence of representativeness heuristic.
 
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