Many Projects Result in Escalation of Commitment When Decision Makers

question 40

Multiple Choice

Many projects result in escalation of commitment when decision makers underestimate the risk and overestimate their probability of success. This is called the:

• A) fallacy of distribution.
• B) regression fallacy.
• C) gambler's fallacy.
• D) red herring fallacy.

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Definitions:

Vapor Phase

The state of a substance when it is in gas form, especially when it coexists with its liquid or solid phase.

Avogadro's Law

States that equal volumes of gases at the same temperature and pressure contain the same number of molecules.

Equal Volumes

Describes when two or more substances occupy the same amount of space, despite possibly having different shapes or forms.

Balanced Chemical Equation

A symbolic representation of a chemical reaction in which the number of atoms for each element is equal on both the reactant and product sides.