A decision bias is an inherent tendency that leads to incorrect decisions. An example of a decision bias is failure to:
A) Consider all relevant costs.
B) Properly identify sunk costs as irrelevant.
C) Consider opportunity costs.
D) Adjust for the time value of money.
E) Consider legal constraints associated with the pricing decision.

Question

Quizplus · Accepted Answer

The failure to properly identify sunk costs as irrelevant is an example of a decision bias, as it leads to incorrect decisions. The other options are important considerations in decision making, but not necessarily biases.

A Decision Bias Is an Inherent Tendency That Leads to Incorrect