You started an online business two weeks ago. Thus far, you have averaged ten sales a day, which is one sale for every five hits. You are now considering giving up your day job and becoming a full-time online retailer. You have calculated the amount of income you can earn based on ten sales a day and know that level of income would support you in a comfortable fashion. The belief that you will have ten sales per day if this becomes your full-time occupation is based on which one of the following?a.Mental accounting
b.Anchoring and adjustment
c.Law of small numbers
d.Bubble and crash theory
e.Confirmation bias

The law of small numbers is a false conclusion people come up with by comparing a small sample with the total population from where the sample is drawn. In other words, it is a mistake people make by assuming just because something happened randomly positive or negative all the events will be positive of negative - what corresponds. All other variables affecting that event are left behind by this judgment.

Therefore, believing that every day we could book ten sales only because it worked that way for some time is a mistake since it is based only on the positive aspects of that event without considering that at a certain point consumers may find a substitute or can be simply bored of the product. This reflects the law of small numbers.