A(n)________ Occurs When Decision Makers Incorrectly Fixate on Past Expenditures

question 15

Multiple Choice

A(n) ________ occurs when decision makers incorrectly fixate on past expenditures of time,money,or effort in assessing choices rather than focusing on future consequences.

• A)hindsight bias
• B)confirmation bias
• C)overconfidence bias
• D)sunk costs error

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Definitions:

Variance

A measure of the dispersion or spread of a set of data points around their mean value.

Minimin Strategy

A decision rule used in scenarios involving uncertainty, where the decision maker aims to minimize the potential for the worst-case scenario.

Maximum Payoff

The highest possible return that can be achieved from an investment or decision scenario.

Minimum Payoff

The least amount of return or profit one can expect from an investment or decision.