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.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

Research indicates that people tend to give too much importance to recent information when making decisions or forecasts, a cognitive bias known as recency bias. This can lead to forecasting errors because the most recent information may not always be the most relevant or accurate for predicting future events.

Forecasting Errors Are Potentially Important Because