Claude and Marie are excited because they just bought a restaurant. The last seven restaurants that have been operated at that location have gone bankrupt within a year of their openings, but Claude and Marie are certain their restaurant will be successful because they plan on working hard. In this case, the new business partners are
A)showing belief perseverance.
B)showing evidence of the gambler's fallacy.
C)showing the confirmation bias.
D)apparently ignoring base rates.

Question

Quizplus · Accepted Answer

Claude and Marie are ignoring base rates, which refers to ignoring the statistical information about the previous failures of restaurants at that location and relying instead on their personal belief that hard work will lead to success.

Claude and Marie Are Excited Because They Just Bought a Restaurant