Refer to the scenario below to answer the following questions.
Decision-making Biases (Scenario)
Frank is president of Mega Manufacturing, a Canadian company that makes automobile parts. Sales and profits are down sharply this quarter, and Frank needs to analyze the series of events that have led to the poor performance. Frank begins by reviewing his recent interactions with Mike, the vice-president of sales.
-Last week when Frank asked Mike how his presentation to a large Japanese car maker went, Mike replied, "My presentation was brilliant! They loved me! I am positive we will get the contract!" Mike's overly positive view of his performance demonstrates which of the following?
A) confirmation bias
B) hindsight bias
C) overconfidence bias
D) sunk costs error
E) escalation of commitment

Question

Quizplus · Accepted Answer

Mike's overly positive view of his performance demonstrates overconfidence bias, which is the tendency to overestimate one's own abilities or the accuracy of one's beliefs and predictions.

Refer to the Scenario Below to Answer the Following Questions