Which of the Following Types of Biases in Decision Making

question 46

Multiple Choice

Which of the following types of biases in decision making represents the tendency of decision makers to prefer a sure thing?

• A) hindsight bias
• B) bounded rationality
• C) escalation of commitment
• D) selective perception
• E) risk aversion

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Definitions:

Payment

The act of giving money or other compensation to settle a debt or obligation.

Certified Checks

Checks guaranteed by a bank, verifying that the signer has enough funds in their account to cover the amount specified on the check.

Dishonored

In financial terms, a dishonored instrument (like a check) refers to one that cannot be processed because the payor's account lacks sufficient funds or is closed.

Liability

The state of being legally responsible for something, particularly for debts or legal obligations.