Refer to the Scenario Below to Answer the Following Questions

question 62

Multiple Choice

Refer to the scenario below to answer the following questions.
Decision-making Biases (Scenario)
Frank is president of Mega Manufacturing, a Canadian company that makes automobile parts. Sales and profits are down sharply this quarter, and Frank needs to analyze the series of events that have led to the poor performance. Frank begins by reviewing his recent interactions with Mike, the vice-president of sales.
-Unfortunately, Frank learned yesterday that the Japanese car maker decided to award the contract to a competing auto parts company. When Frank asked Mike why they lost the sale, Mike blamed it on the high Canadian dollar and the rise in cheap offshore auto parts suppliers. Mike is demonstrating which of the following?

• A) confirmation bias
• B) self-serving bias
• C) overconfidence bias
• D) sunk costs error
• E) framing bias

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Case study

An in-depth examination of a single example or case, often used in qualitative research to explore a complex issue in detail.

Systematic observation

An observational method that involves structured and consistent observation according to a predefined plan.

Quantitative

Refers to data that can be expressed numerically, often used in statistical analysis to quantify behaviors, opinions, or other defined variables.