After graduating from university, you are planning to get a job as an accountant.Your best friend Jay is planning on opening his own restaurant.He says he has thought a great deal about this and believes he will be very successful and it is a good decision.You explain to him that most new restaurants fail, but it does not factor into Jay's decision.What does this demonstrate?
A)Base rates
B)Anchoring effect
C)Perceptual defence
D)Sunk costs
E)Hindsight

Question

Quizplus · Accepted Answer

Jay's disregard for the general failure rate of new restaurants in favor of his own belief in success demonstrates a neglect of base rates, which are general statistical outcomes or averages.

After Graduating from University, You Are Planning to Get a Job