Question

Question 1 2 pts A banker opts for short-term gain despite indications that his decision might not pay off in the long run. Which error or bias is the banker guilty of? representation O overconfidence immediate gratification selective perception bias 2 pts Question 2 at share is employing

Answer 1

Over confidence is where a person takes a decision thinking that they know everything despite warnings that it is not the correct decision to make. Selective perception bias is where a person gives preference to something or someone over others and ignores their mistakes in making a decision. In the given example , short term gain is given more importance by the banker than long term goals . It means the banker wants the result immediately and does not mind what happens in the future . This kind of bias in which short term gain is given more importance and long term results are neglected is known as immediate gratification. Hence the banker is guilty of immediate gratification. Hence the answer is immediate gratification.