Claude and Marie Are Excited Because They Have Just Bought

question 56

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) ignoring base rates 
• D) showing belief perseverance

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Definitions:

International Shoe Co. v. State of Washington

A landmark Supreme Court case establishing the standard for what constitutes sufficient minimum contacts within a state for the exercise of jurisdiction over an out-of-state defendant.

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