Fill in the blank with the correct word.

People use _____ and adjustment when they make judgments based on the difference between the event in question and an initial starting estimate.

People use anchoring and adjustment when they make judgments based on the difference between the event in question and an initial starting estimate. The anchor is the starting point or the first piece of information available when making an initial estimate, and then based on subsequent judgments based on additional information, people revise that estimate up or down. However, people are inclined to give more weight to that initial bit of information, resulting in anchor bias.