A company is being investigated by the Securitites Exchange Commission (SEC). The chief executive officer (CFO) has been "cooking the books" for years to impress the CEO of the companies, showing bigger profits than they actually made. He provided investors and other government agencies with financials that reflect this discrepancy, which is very illegal, and most CFO's go to prision once investigators perform an extensive audit. He's not worried though, he's hidden the false transactions within line items that the SEC will never find. What type of bias is this? Authority bias Overconfidence bias Dunning-Krueger Effect I'm Indestructible Bias

A company is being investigated by the Securitites Exchange Commission (SEC). The chief executive officer (CFO) has been "cooking the books" for years to impress the CEO of the companies, showing bigger profits than they actually made. He provided investors and other government agencies with financials that reflect this discrepancy, which is very illegal, and most CFO's go to prision once investigators perform an extensive audit. He's not worried though, he's hidden the false transactions within line items that the SEC will never find. What type of bias is this? Authority bias Overconfidence bias Dunning-Krueger Effect I'm Indestructible Bias

Ciccarelli: Psychology_5 (5th Edition)

5th Edition

ISBN:9780134477961

Author:Saundra K. Ciccarelli, J. Noland White

Publisher:Saundra K. Ciccarelli, J. Noland White

Chapter1: The Science Of Psychology

Section: Chapter Questions

Problem 1TY

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Question

A company is being investigated by the Securitites Exchange Commission (SEC). The
chief executive officer (CFO) has been "cooking the books" for years to impress the
CEO of the companies, showing bigger profits than they actually made. He provided
investors and other government agencies with financials that reflect this discrepancy,
which is very illegal, and most CFO's go to prision once investigators perform an
extensive audit. He's not worried though, he's hidden the false transactions within
line items that the SEC will never find.
What type of bias is this?
C
$
4
Authority bias
Overconfidence bias
Dunning-Krueger Effect
I'm Indestructible Bias
R
O
V
D:
6
IL
G
B
&
H
7
99+
N
IC
8
9
O
K
M
?
L
77°F Mostly clear
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Expert Solution

Introduction

Decision-making is supposed to be a rational and logical process. However, biases can impede this rational process, as they can distort thinking and impact beliefs, judgements and decisions that people make everyday. So, biases can impair judgements and lead to weak decisions.