"Oh MAN," you complain! "I knew that I should have sold my stock in Google when it was over $600 a share! Now it is under $400 a share and I lost all of my profits." This kind of statement that suggests that we knew the right path to take after it is too late is what researchers call __________ bias.

Question

Quizplus · Accepted Answer

Hindsight bias refers to the tendency to believe, after the fact, that one would have predicted or expected the outcome of an event. In this case, the person believes that they should have sold their stock in Google when it was over $600 a share, but only after the stock has dropped below $400 a share.

"Oh MAN," You Complain! "I Knew That I Should Have