TJ said it did not matter which way the company went because one had a 40% loss and the other had a 60% profit last year. TJ was displaying the bias of
A) illusion of control.
B) framing effects.
C) discounting the future.
D) bargaining.
E) benchmarking.

Question

Quizplus · Accepted Answer

TJ is displaying the framing effect, which is a cognitive bias where people's decisions are influenced by how information is presented or framed. In this case, TJ is only focusing on the past year's performance without considering other important factors that may affect the decision-making process. The 40% loss and 60% profit figures may not reflect the overall health or potential of each option, and by merely presenting these figures without context, TJ is displaying the framing effect.

TJ Said It Did Not Matter Which Way the Company