Anytime Ted analyzes a proposed project, he always assigns a much higher probability of success to the project than is warranted by the information he has gathered. Ted suffers from which one of the following?
A) Frame dependence
B) Mental accounting
C) Endowment effect
D) Confirmation bias
E) Overoptimism

Question

Quizplus · Accepted Answer

Ted's tendency to assign a much higher probability of success to projects than the information he has gathered warrants is a classic symptom of overoptimism. This cognitive bias is characterized by an individual's tendency to overestimate the likelihood of positive outcomes while underestimating the probability of negative outcomes. While positive thinking can be helpful, excessive optimism can lead to poor decision-making and risky behaviors.

Anytime Ted Analyzes a Proposed Project, He Always Assigns a Much