Many projects result in escalation of commitment when decision makers underestimate the risk and overestimate their probability of success. This is called the:
A) fallacy of distribution.
B) regression fallacy.
C) gambler's fallacy.
D) red herring fallacy.

Question

Quizplus · Accepted Answer

The given scenario describes the gambler's fallacy, where decision makers continue to invest resources into a project because they believe that their past investment makes it more likely the project will succeed, despite the actual probability of success remaining unchanged.

Many Projects Result in Escalation of Commitment When Decision Makers