COGNITION
THINKING AND LANGUAGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Belief Perseverance
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Belief Bias
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Over Confidence
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Framing Effect
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Detailed explanation-1: -Operant Conditioning. Q. The tendency to be very sure of a fact and later finding that the objective reality was different. Belief Perseverance.
Detailed explanation-2: -Overconfidence bias is a tendency to hold a false and misleading assessment of our skills, intellect, or talent. In short, it’s an egotistical belief that we’re better than we actually are. It can be a dangerous bias and is very prolific in behavioral finance and capital markets.
Detailed explanation-3: -Overconfidence has been studied in 3 distinct ways. Overestimation is thinking that you are better than you are. Overplacement is the exaggerated belief that you are better than others. Overprecision is the excessive faith that you know the truth.
Detailed explanation-4: -Confidence is when we feel sure about our actions and make the right decisions. We believe in our ability to do something and have faith in ourselves. On the other hand, overconfidence is excessive belief in our abilities, overlooking the fact that we can be wrong too.