Suppose a company provides a press release that states that earnings are higher than last year, ignoring the fact that the earnings last year were the lowest in a decade. What cognitive bias is the company using in the way it created its press release?
A) Framing
B) Anchoring
C) Loss aversion
D) Overconfidence

Question

Quizplus · Accepted Answer

Framing bias is at play here because the company is presenting information in a way that manipulates perception, emphasizing the positive aspect of higher earnings compared to last year without considering the context of those earnings being the lowest in a decade.

Suppose a Company Provides a Press Release That States That