Which of the following is true about the overconfidence bias?

Which of the following is true about the overconfidence bias?


a. It occurs when individuals react to arbitrary or irrelevant numbers when setting financial or other numerical targets.
b. It occurs when information that is more handy is incorrectly assessed to also be more likely.
c. It occurs when good outcomes are attributed to personal characteristics but undesirable outcomes are attributed to external circumstances.
d. It occurs when mistakes seem obvious after they have already occurred.
e. It occurs when individuals have more faith in their abilities to predict an event than logic suggests is actually possible.


Answer: E


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