The tendency to prefer a sure thing describes which decision making bias?
A) hindsight bias
B) bounded rationality
C) escalation of commitment
D) randomness
E) risk aversion

Question

Quizplus · Accepted Answer

The tendency to prefer a sure thing is a sign of risk aversion, which is the preference for a certain outcome over an uncertain one, even if the uncertain outcome has a higher expected value. This bias can lead to missed opportunities for higher returns, but also protects against potential losses.

The Tendency to Prefer a Sure Thing Describes Which Decision