An example of the application of the __________ is the executive who makes salary increase recommendations for key personnel by simply adjusting their current base salaries by a percentage amount.

A) representativeness heuristic
B) anchoring and adjustment heuristic
C) equivalence heuristic
D) incremental change heuristic
E) availability heuristic

Anchoring and Adjustment Heuristic

Bases a decision on incremental adjustments to an initial value determined by historical precedent or some reference point.

Executive

An individual or group of individuals at the highest level of management within an organization, responsible for making major decisions and setting strategic directions.

Base Salaries

The initial rate of compensation an employee receives in return for their services, not including extra benefits, bonuses, or overtime.