Final answer:
The use of a relative rating scale can lead to 'contrast' error, where evaluations are influenced by comparisons to others. Other cognitive biases include 'anchoring bias', where the first information influences decisions, and 'confirmation bias', where one's preconceptions dictate how information is interpreted. Correct option is C.
Step-by-step explanation:
Evaluating candidates using a relative rating scale can lead to a type of rater error known as contrast error. This occurs when the evaluation of one individual is unfairly influenced by the comparison with others rather than an independent assessment. In other words, individuals are rated relative to others rather than against fixed standards.
Regarding cognitive biases, the anchoring bias refers to the tendency to rely heavily on the first piece of information encountered (the "anchor") when making decisions, even if it's not relevant. The confirmation bias is the tendency to search for, interpret, and recall information in a way that confirms one's preconceptions, leading to statistical errors. Availability heuristic is another cognitive bias that people use, which makes them rely on immediate examples that come to mind when evaluating a topic, concept, method, or decision, often leading to misjudgments or errors.