Forecasting errors are potentially important because
A)research suggests that people underweight recent information.
B)research suggests that people overweight recent information.
C)research suggests that people correctly weight recent information.
D)research suggests that people either underweight recent information or overweight recent information depending on whether the information was good or bad.

Question

Quizplus · Accepted Answer

Research has found that people tend to overweight recent information, a bias known as recency bias. This leads to a tendency to place too much emphasis on recent trends or events when making forecasts, which can result in forecasting errors.

Forecasting Errors Are Potentially Important Because