Solution By Steps

Step 1: Identify the error in the district manager’s thinking

The question states that the district manager sees that sales figures have declined at a store for three straight months and decides to replace the store manager. The options provided describe different types of biases that could be influencing the district manager’s thinking.

Step 2: Evaluate the options

A. Fundamental bias - This refers to the tendency to overemphasize fundamental, long-term factors and underestimate the impact of situational factors. This does not seem to be the error in the district manager’s thinking.

B. Self-serving bias - This is the tendency to attribute positive outcomes to one’s own abilities and negative outcomes to external factors. This could be a potential error in the district manager’s thinking.

C. Attributional bias - This is the tendency to make causal attributions that serve one’s own interests. This could also be a potential error in the district manager’s thinking.

D. Assumption error - This refers to making assumptions without sufficient evidence. This could be the error in the district manager’s thinking, as the decline in sales figures alone may not be sufficient evidence to conclude that the store manager is the problem.

Step 3: Determine the best answer

Based on the evaluation of the options, the best answer is D. Assumption error. The district manager is making the assumption that the store manager is the cause of the declining sales figures, without considering other potential factors or gathering more information.

Final Answer

The error in the district manager’s thinking is an assumption error, where they are making the assumption that the store manager is the cause of the declining sales figures without sufficient evidence.