GROWTH DEVELOPMENT CHILD
COGNITION AND EMOTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Confirmation bias
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Hindsight bias
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Anchoring bias
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Availability bias
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Detailed explanation-1: -confirmation bias, people’s tendency to process information by looking for, or interpreting, information that is consistent with their existing beliefs. This biased approach to decision making is largely unintentional, and it results in a person ignoring information that is inconsistent with their beliefs.
Detailed explanation-2: -For example, imagine that a person believes left-handed people are more creative than right-handed people. Whenever this person encounters a person that is both left-handed and creative, they place greater importance on this “evidence” that supports what they already believe.
Detailed explanation-3: -Confirmation bias is the tendency of human beings to actively search for, interpret, and retain information that matches their preconceived notions and beliefs. The confirmation bias concept comes from the field of cognitive psychology and has been adapted to behavioral finance.