Final answer:
People may mistakenly estimate the product of (5x4x3x2x1) as higher than (1x2x3x4x5) due to anchoring bias, which leads to overemphasis on initial numbers in a sequence.
Step-by-step explanation:
The reason why people may estimate the product of (5x4x3x2x1) to be higher than the product of (1x2x3x4x5) is due to a cognitive bias known as anchoring bias. This is because our minds tend to focus on the initial information as a reference point, which influences our subsequent judgments and decisions, even if that information is irrelevant or arbitrary. The correct answer to the question is "b) anchoring" as this type of bias leads individuals to overestimate or underestimate numerical values based on the number they first encounter.
Anchoring bias can result in an initial high number like 5 in the sequence making us believe that the entire product must be larger than a sequence that starts with a low number like 1, despite both sequences containing the same factors and therefore resulting in the same product.