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.
-Unfortunately, Frank learned yesterday that the Japanese car maker decided to award the contract to a competing auto parts company. When Frank asked Mike why they lost the sale, Mike blamed it on the high Canadian dollar and the rise in cheap offshore auto parts suppliers. Mike is demonstrating which of the following?
A) confirmation bias
B) self-serving bias
C) overconfidence bias
D) sunk costs error
E) framing bias

Question

Quizplus · Accepted Answer

Mike is demonstrating a self-serving bias by blaming external factors (high Canadian dollar and rise in cheap offshore auto parts suppliers) for the lost sale instead of taking responsibility for potential shortcomings in his own sales strategy or team.

Refer to the Scenario Below to Answer the Following Questions