Final answer:
Selective perception is the tendency to interpret one's environment based on personal expectations, experiences, and attitudes, and is related to confirmation bias, anchoring, and the availability heuristic.
Step-by-step explanation:
The term that describes the tendency for people to interpret their environment based on their own expectations, experiences, and attitudes is selective perception. This cognitive bias is closely related to others such as confirmation bias, where people focus on information that confirms their existing beliefs, and anchoring, which is the reliance on an initial value or example when making decisions.
Another related concept is the availability heuristic, where individuals assess the probability of an event based on how easily they can recall similar instances, rather than on objective data.