Claude and Marie are excited because they have just bought a restaurant from the previous owners.The two partners know that the last seven restaurants that have been operated at that location have gone bankrupt within a year of their openings,but Claude and Marie are certain their restaurant will be successful because they plan on working hard to be a success.What are the two new business partners doing in this case

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Quizplus · Accepted Answer

Claude and Marie are ignoring base rates, which refer to the statistical probability of success or failure based on past performance data. They are disregarding the fact that the previous seven restaurants at that location went bankrupt within a year of their openings. Instead, they are relying on their personal abilities and hard work to ensure the success of their restaurant, which is not necessarily a reliable predictor of success in the restaurant industry.

Claude and Marie Are Excited Because They Have Just Bought