Question

Most students underestimate how long it will take to complete papers and other major assignments. Students are not alone. Which of the following also describe issues with estimating?

A) Stockbroker confidence that experts are overconfident they can beat the stock market average.
B) CEO overconfidence in which one individual decides all the major decisions and judgments of the corporation.
C) Planning fallacy that individuals overestimate how much we will get done and how much free time we will have.
D) Political overconfidence in which overconfident decision-makers can wreak havoc.

Answer 1

Issues of overconfidence and estimation challenges are evident in various examples, such as the Planning fallacy where individuals overestimate how much they can accomplish, Stockbroker confidence where professionals find it difficult to outguess the market, and CEO overconfidence leading to risky decision-making.

Step-by-step explanation:

Issues related to underestimating time and overconfidence are common in various fields, and several examples illustrate similar estimation issues. C) Planning fallacy is a cognitive bias where individuals tend to overestimate their efficiency and the amount of work they can complete, which aligns with students' underestimation of the time required for assignments. A) Stockbroker confidence and the difficulty for even professionals to outguess the market showcase overconfidence in financial predictions. B) CEO overconfidence represents a situation where a singular individual might take major corporate decisions without ample consideration of their own fallibility, hence creating potential risks. All these examples exhibit different facets of overconfidence and estimation challenges in decision-making processes.