Claude and Marie Are Excited Because They Have Just Bought

question 170

Multiple Choice

Claude and Marie are excited because they have just bought a restaurant from the previous owners. The two partners know that the last seven restaurants that have been operated at that location have gone bankrupt within a year of their openings, but Claude and Marie are certain their restaurant will be successful because they plan on working hard to be a success. What are the two new business partners doing in this case?

• A)supporting the gambler's fallacy
• B)demonstrating the confirmation bias
• C)apparently ignoring base rates
• D)showing belief perseverance

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Definitions:

Phrenology

An outdated and discredited theory that suggested the bumps on the skull could predict mental traits and character.

Situational Factors

External influences that affect an individual's behavior or decision-making process in a given context.

Instinct

A natural, usually unchangeable behavior pattern in animals triggered by specific stimuli.

Mitosis

A process of cell division that results in two genetically identical daughter cells from a single parent cell.