Final answer:
Chunking is a memory strategy for organizing information into subsets to increase the retention of information in short-term memory, which can aid in transferring it to long-term memory. Phone numbers are a common example of information that is chunked to make it easier to remember.
Step-by-step explanation:
Grouping numbers, letters, or other items into meaningful subsets is a strategy for increasing the amount of information that can be held in short-term memory. This technique is known as chunking, which involves organizing information into manageable bits or chunks, making it easier to remember complex strings of data. A common example of chunking is the way we memorize phone numbers, such as breaking down the number 5205550467 into the more manageable set of numbers 520-555-0467. Additionally, other methods like using mnemonic devices aid in organizing information for encoding, thereby transforming it into long-term memory. Graphs are used by economists to condense detailed numerical information into a visual form, which is another example of how chunking can be applied to make information more accessible.