CEO Maria is so convinced that company sales will triple, that she commits the company to lavish new expenses without making contingency plans if the sales growth does not take place. Maria might be falling into the
A) prudence trap.
B) overconfidence trap.
C) recallability trap.
D) subjective thinking trap.

Question

Quizplus · Accepted Answer

Maria is exhibiting overconfidence bias by being overly optimistic about the company's sales growth and committing to lavish new expenses without considering the possibility that the sales growth might not take place. Overconfidence bias can lead to risky decisions and lack of contingency plans.

CEO Maria Is So Convinced That Company Sales Will Triple