Katherine believes she will earn a higher salary than her classmates once she's out of university and that she is less likely to incur any financial problems. Katherine is exhibiting:

Question

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Katherine is exhibiting the optimistic bias, which refers to the tendency to overestimate the likelihood of positive events happening and underestimate the likelihood of negative events happening. This bias can lead individuals to make risky or unrealistic decisions based on their unrealistic expectations.

Katherine Believes She Will Earn a Higher Salary Than Her