SCENARIO 12-1 You are making a decision whether to discontinue research on a new drug.This new drug would save lives, but it is uncertain whether it can be developed within a reasonable time frame and at a reasonable cost.Your firm has already spent a small fortune on this drug.You have gathered so much information in preparation for making the decision that you are unable to sort the good information from the superfluous.
You state to the committee helping you that all information and research on this drug and the disease it is to treat has been sorted and processed into the 36 binder that are on the table in front of them.In making this statement and assuming you have complete information you are committing
A)confirmation bias.
B)optimal solution.
C)lateral approach.
D)fundamental attribution error.
E)risk aversion.

Question

Quizplus · Accepted Answer

The statement made by the decision maker suggests confirmation bias, as they are assuming that all information has been processed and sorted when in reality, they may have overlooked key information or have not fully evaluated all options. This also suggests a potential bias towards continuing with the research due to the sunk cost fallacy (having already spent a significant amount of money on the project).

SCENARIO 12-1 You Are Making a Decision Whether to Discontinue