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They asked whether it was more probable that Linda is a bank teller or that she is a bank teller and an active feminist.The overwhelming response was that "feminist bank teller" was more likely than "bank teller," violating the laws of probability.
It rarely considers Known Unknowns, phenomena that it knows to be relevant but about which it has no information.
Furthermore, the mind generally does not account for the role of chance and therefore falsely assumes that a future event will mirror a past event.
Framing is the context in which choices are presented.
In addition to offering an explanation for the statistical problem, the theory also offers an explanation for human biases.
This is an important concept to have in mind when navigating a negotiation or considering a price.