AP PSYCHOLOGY

Detailed explanation-1: -hindsight bias. overconfidence. predict the outcomes of experiments before they are told the actual results.

Detailed explanation-2: -The tendency to exaggerate the correctness or accuracy of our beliefs and predictions is called. hindsight bias.

Detailed explanation-3: -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-4: -The tendency to believe or trust someone is called d) credibility. Since some individuals are perceived to be more credible, people tend to believe what those individuals communicate and discount information from others. The degree of trust, status, and influence of the sender and recipient determine credibility.

Detailed explanation-5: -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.