Final answer:
The statement refers to hindsight bias, a cognitive bias where people believe an event was predictable after they know the outcome. It is important for rational decision-making to understand this and other biases like confirmation bias and anchoring bias.
Step-by-step explanation:
The statement in question is describing hindsight bias, a cognitive bias that involves the belief that an event was predictable, after knowing the outcome, despite not having predicted it. It is often accompanied by the tendency to forget one's prior state of knowledge, leading to an overestimation of one's own ability to have predicted the event. This bias is just one of the numerous cognitive heuristics and biases that can affect decision-making and judgment, such as the confirmation bias, anchoring bias, and the availability heuristic. Recognizing these biases can aid individuals in making more rational decisions, by taking into account the influence of past experiences, information sources, and the substitution of complex questions with simpler ones due to cognitive ease.