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Eileen, a college professor, has to pick a textbook for an upcoming course. She has just enough time to review a few books from the many choices available. She settles for one of the books, even though the best book might be a book that she hasn't yet reviewed. What is this process called?
Survivorship Bias
The logical error of focusing on instances that survived a selection process and overlooking those that did not because of their lack of visibility.
Backfill Bias
A bias that can occur when historical performances of investment portfolios are artificially inflated because only successful funds are reported or included in analyses.
Incentive Bias
A psychological lean or predisposition towards certain decisions or actions due to promised rewards or incentives.
Survivorship Bias
The error of focusing on the successes or survivors in a group and overlooking those that failed, which can lead to overly optimistic beliefs or conclusions.
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