Final answer:
Confirmation bias is the tendency to process information by looking for, or interpreting, information that is consistent with one's existing beliefs. This biased approach can lead to a disproportionate emphasis on confirming evidence, poking holes in opposing views rather than engaging with them, and can result in the continuance of stereotypes.
Step-by-step explanation:
The process of holding extreme beliefs on the basis of a single incident and applying them inappropriately to dissimilar events or settings is known as confirmation bias. This cognitive bias involves the tendency to focus on information that confirms existing beliefs, even if that information is anecdotal or not representative of the whole. For instance, if a person believes that a certain group behaves in a negative manner, any instance of that behavior by an individual from the group is seen as proof, reinforcing the belief. This ignores the instances that contradict the belief and focuses only on the supportive evidence, even if it's not statistically significant.
Confirmation bias is also related to the hindsight bias and availability heuristic, which lead to the belief that certain events were predictable or that vivid, recent, or memorable occurrences reflect a larger trend than they actually do. These biases can prevent individuals from seeing the full picture and lead to misconceptions and stereotypes, influencing our judgment and decision-making inappropriately.