When conducting a study on success rates, which of the following would most likely be subject to survivor bias?
A) Of the 4 Starbucks locations that opened exactly 5 years ago in the same city, the location next to the concert arena has been the most financially successful.
B) Of the 75 oil exploration firms based in North Dakota, over half of those that recently filed for bankruptcy have been in business for 5 years or less.
C) Of the 25 high schools located in Concordia County, this year's SAT scores were highest from students who attend Springdale High, the newest high school in the county.
D) Of the 115 oceanfront hotels in Honolulu, only those with private beaches are able to charge more than $200 per night on average.

Question

Quizplus · Accepted Answer

Of the 75 oil exploration firms based in North Dakota, over half of those that recently filed for bankruptcy have been in business for 5 years or less.Survivor bias is the logical error of concentrating on the people or things that made it past some selection process and overlooking those that did not, typically because of their lack of visibility. In this case, the study is on success rates, and the selection process is filing for bankruptcy. The firms that have filed for bankruptcy are the ones that have not survived, so they are not included in the study. This means that the study is biased towards the firms that have survived, and the results may not be representative of the overall population of oil exploration firms.

When Conducting a Study on Success Rates, Which of the Following