Final answer:
The bias observed when attributing group behavior to inherent characteristics rather than situational factors is called the fundamental attribution error.
Step-by-step explanation:
The bias observed when attributing group behavior to inherent characteristics rather than situational factors is called the fundamental attribution error. This bias occurs when individuals tend to overemphasize internal factors to explain the behavior of others, while underestimating the influence of the situation. For example, if someone attributes a person's hostile behavior to their personality traits, instead of considering that external factors may be causing their behavior.