Introduction to financial statement modelling

Question 1

Types of bias to lead to inaccurate forecasts

Answer 1

1. Overconfidence bias
2. Illusion of control bias
3. Conservatism bias
4. Representativeness bias (base-rate neglect)
5. Confirmation bias

Question 2

Porter’s five forces

Answer 2

1. Threat of substitute products
2. Intensity of industry rivalry
3. Bargaining power of suppliers
4. Bargaining power of customers
5. Threat of new entrants

Question 3

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