Deck 2: Overconfidence

Question 1

Why do we tend to overplace our ability relative to others on easy tasks?

Answer 1

While we tend to underestimate our performance,we tend to underestimate the performance of others to an even larger extent because we fail to adequately consider the skill of the competition.

Question 2

Why do many argue that overplacement is more problematic than underplacement?

Answer 2

People tend to select careers and hobbies on the basis of the extent to which they think they are better than others.Because they so often fail to adequately account for the skills of those who they are competing against,many people place themselves in situations where they have a low probability of success.

Question 3

People tend to overestimate their control in situations where they have objectively little control.

Answer 3

True

Question 4

What is the name given to the tendency to be too sure that our judgments and decisions are accurate?

A)Overprecision
B)Overestimation
C)Overplacement
D)Overjustification

Question 5

What is the name given to the tendency to falsely think we rank higher than others on certain dimensions?

A)Overprecision
B)Overestimation
C)Overplacement
D)Overjustification

Question 6

What is the potential downside to portraying confidence to others?

Question 7

Overconfidence is so robust that research has failed to identify situations in which we are likely to be underconfident.

Question 8

Which of the following is a common mistake made by investors?

A)They don't invest enough money.
B)They trade too often.
C)They take on too much risk in their portfolios.
D)They don't correctly time the market.

Question 9

In what ways is it beneficial to outwardly express confidence?

A)People feel better about themselves.
B)People perform better because they face a lot of pressure to justify their confident predictions.
C)People are more persuasive and capable of attaining status when they portray confidence.
D)The outward expression of confidence is not beneficial.

Question 10

What is the planning fallacy and when is it the most likely to occur?

Question 11

Why,according to research,do people tend to be overconfident in estimating outcomes? Suggest a mechanism for tackling overconfidence.

Question 12

When are we the most likely to overplace our performance relative to others?

A)When we are in a good mood.
B)When we are trying to impress others.
C)When we are working on an easy task.
D)None of the above.

Question 13

What is the name given to the tendency to think we are better than we actually are?

A)Overprecision
B)Overestimation
C)Overplacement
D)Overjustification

Question 14

There are advantages to having positive illusions.