The Tendency for Decision Makers to Be Overconfident of Their

question 29

Multiple Choice

The tendency for decision makers to be overconfident of their ability to control activities and events is known as

• A) escalation of commitment.
• B) the illusion of control.
• C) intuition.
• D) groupthink.

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Definitions:

Random Variable

A random variable represents numerical outcomes of random phenomena or experiments, varying in value based on the outcomes of the process.

Standard Normal Distribution

A probability distribution that has a mean of 0 and a standard deviation of 1, representing a bell-shaped curve.

99th Percentile

A value below which 99% of the data points in a data set fall, used as a measure of statistical distribution.

Z Distribution

A statistical distribution that describes the distribution of standardized values; it's used in inference regarding mean of normally distributed populations when the standard deviation is known.