The overconfidence bias:
A) Leads people to have an exaggerated fear of loss
B) Leads people to overestimate the risks inherent in generating a possible gain
C) Leads people to unduly fear losses
D) Leads people to unduly minimize the odds of loss

Question

Quizplus · Accepted Answer

The overconfidence bias leads people to unduly minimize the odds of loss. It is a cognitive bias where individuals have an unwarranted belief in their own abilities or judgments, leading to risky decision-making and overestimation of their performance or chances of success.

The Overconfidence Bias