Final answer:
The halo effect is a rater error where one trait of an individual colors the observer's ratings of other traits or characteristics.
Step-by-step explanation:
The rater error that occurs when the observer allows the rating of an individual on one trait or characteristic to color the ratings of others is known as the halo effect. This cognitive bias can lead to skewed assessments in various settings, such as performance reviews or academic grading, where an individual's positive qualities in one area may lead to disproportionately favorable evaluations in other areas, regardless of actual performance. The halo effect can also result in the opposite scenario, where negative impressions in one domain unfavorably influence perceptions in others.