33 Cognative Bias Flashcards
1
Q
_________ bias is the logical error of concentrating on entities that passed a selection process while overlooking those that did not.
A
Survivorship Bias - can lead to overly optimistic beliefs because multiple failures are over looked, such as companies that no longer exist are excluded from analysis of financial performance.
It can also lead to the false belief that the success in a group have some special property, rather than just coincidence as in correlation “proves” causality.
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