Intermediate Accounting
Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 3, Problem 3.3BE

Match Each Cognitive Bias Below with its Description.

Availability bias a. A phenomenon that occurs in situations where members of a group, in an attempt to avoid conflict, reach a consensus decision without considering all of the reasonable alternatives.

Overconfidence

bias

b. The tendency to be more confident than your abilities and experience level would objectively warrant.

Confirmatory

bias

c. The tendency to use the data that is most readily available or most easily recalled to make a decision, as opposed to considering all relevant data.

Groupthink

bias

d. The decision maker focuses on one piece of information, weighting it more heavily than other pieces of information.
Anchoring bias e. A decision maker under-weights information that is not consistent with her initial beliefs.
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