ECONOMICS

Detailed explanation-1: -Answer and Explanation: The statement is false. When a person believes to have correctly predicted the outcome of random events, he is known to have a hindsight bias. The individuals tend to convince themselves that they already knew the results of a specific event.

Detailed explanation-2: -The self-serving bias is the tendency people have to seek out information and use it in ways that advance their self-interest. In other words, people often unconsciously make decisions that serve themselves in ways that other people might view as indefensible or unethical.

Detailed explanation-3: -Hindsight bias is a psychological phenomenon in which one becomes convinced they accurately predicted an event before it occurred. It causes overconfidence in one’s ability to predict other future events and may lead to unnecessary risks.

Detailed explanation-4: -What is Self-serving Bias? The self-serving bias describes when we attribute positive events and successes to our own character or actions, but blame negative results to external factors unrelated to our character. The self-serving bias is a common cognitive bias that has fascinated researchers globally for decades.

Detailed explanation-5: -Examples of self-serving bias A student gets a good grade on a test and tells herself that she studied hard or is good at the material. She gets a bad grade on another test and says the teacher doesn’t like her or the test was unfair. Athletes win a game and attribute their win to hard work and practice.