Final answer:
Lily's reaction to whimpering in the presence of any dog after being bitten by her own dog exemplifies classical conditioning. Meanwhile, a cat's decreasing response to human footsteps, despite initially hiding, demonstrates habituation. Both examples present forms of learning but involve different psychological processes.
Step-by-step explanation:
Lily's repeated crying after being bitten by her dog and subsequently whimpering at the sight of any dog is an example of classical conditioning. This is because she has learned to associate dogs with the negative experience of being bitten. In classical conditioning, an association is formed between a neutral stimulus (in this case, the sight of any dog) and an unconditioned stimulus (the pain of a dog bite), leading to a conditioned response (whimpering or fear). This is similar to the Pavlovian response where a dog becomes conditioned to associate the ringing of the bell with food.
On the other hand, the representation of a cat exhibiting hiding behavior after being exposed to specific footsteps and stimuli illustrates habituation. This is because the cat stops responding to the sound of human footsteps after learning that it's not associated with any danger, showing a form of non-associative learning.
Therefore, the option that should be used to describe the learning process represented by this diagram is habituation, as it indicates a diminished response to a frequently encountered stimulus.