“Inductive reasoning” can lead to stereotyping if based on too few examples.
Inductive reasoning is defined as the opposite of deductive reasoning: going from the specific to the general analysis, or making generalized conclusions based on specific things. An example would be determining what time to leave for work in the morning based on how much traffic there is.
Inductive reasoning can lead to stereotyping if based on too little examples because a broader conclusion is drawn based on what only one person has experienced. Because it’s a natural tendency for humans to use available information at a specific time (even if that information is based solely on personal experience), analyzing too generally can lead to stereotyping. An example of this ideology would be to assume that because a few people of an ethnicity acted the way they did, all of the ethnicity acts that way. This ties heavily into the principle of anecdotal fallacy, which concludes things on a broad level based off only personal experiences and preferences.