Final answer:
The incident of people mistaking a floating tree trunk for the Loch Ness Monster in photographs illustrates the psychological concept of perceptual set, where expectations and knowledge influence our interpretation of sensory information.
Step-by-step explanation:
In 1972, when a British newspaper published pictures of what some believed to be the "Loch Ness Monster," the incident was an illustration of the influence of perceptual set. A perceptual set is a mental predisposition to perceive one thing and not another. This psychological concept pertains to how our expectations, knowledge, and experiences influence our perception, making us see a floating tree trunk as the famed monster.
This occurs because our brain prioritizes information that conforms to our existing beliefs and expectations, a type of top-down processing. Bottom-up processing, on the other hand, would involve direct response to sensory input without the influence of preconceived notions. The influence of perceptual sets exemplifies how perception is not merely about absorbing information but is also shaped by cognitive processes.