A Decision Bias Is an Inherent Tendency That Leads to Incorrect

question 125

Multiple Choice

A decision bias is an inherent tendency that leads to incorrect decisions. An example of a decision bias is failure to:

• A) Consider all relevant costs.
• B) Properly identify sunk costs as irrelevant.
• C) Consider opportunity costs.
• D) Adjust for the time value of money.
• E) Consider legal constraints associated with the pricing decision.

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Definitions:

Confidential Document

A document that contains sensitive information intended to be kept private between specific parties, protected by law or agreement from unauthorized disclosure.

Public Computer

A computer that is made available in public places like libraries, schools, and community centers for use by the general public.

Conflict of Interest

A situation where a person's personal interests might compromise their decision-making or performance in professional duties or official responsibilities.

Directly Adverse

Situations or conditions that are explicitly unfavorable or harmful to one's interests.