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:

Compounded Annually

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Compounded Annually

Describes the process where interest is calculated and added to the principal sum of an investment or loan once a year.

Maximize Benefits

The process of optimizing outcomes or advantages from a given set of resources or actions.

Compounded Annually

Interest that is calculated and added to the principal once every year.