ECONOMICS

Detailed explanation-1: -The availability bias describes the actions of decision makers who try to create meaning out of random events.

Detailed explanation-2: -Randomness Error: Trying to create or perceive meaning from random events based on false information or superstition is known as randomness error. For example; When you wear a particular color shirt to a client meeting, thinking that it is lucky because you cracked a deal the last time you wore it.

Detailed explanation-3: -Framing bias is another concern for decision makers. Framing bias refers to the tendency of decision makers to be influenced by the way that a situation or problem is presented.

Detailed explanation-4: -A bias is a systematic error in decision-making and thinking. It occurs when people process and interpret information in the world around them. It affects the decisions and judgments that they make. People sometimes confuse cognitive biases with logical fallacies.

Detailed explanation-5: -Confirmation bias is important because it may lead people to hold strongly to false beliefs or to give more weight to information that supports their beliefs than is warranted by the evidence.