Explanation:
Base-rate neglect is a cognitive bias where individuals ignore or underweight the base rate (prior probability) information in favor of specific, individuating information. This bias is a subtype of representativeness bias.
Key Points:
- Representativeness bias occurs when people judge the probability of an event based on how similar it is to a prototype or stereotype, rather than using statistical information.
- Base-rate neglect specifically refers to ignoring statistical base rates when making probability judgments.
- Hindsight bias is the tendency to believe, after an event has occurred, that one would have predicted or expected the outcome ("I knew it all along").
- Endowment bias is the tendency for people to value something more highly simply because they own it.
Therefore, base-rate neglect is correctly classified as a type of representativeness bias (Option C).
