Final answer:
Steve's belief that he answered more questions correctly than he actually did is an example of overconfidence. This psychological phenomenon involves an individual having unfounded high confidence in their abilities or performance.
Step-by-step explanation:
Steve's misjudgment of his test performance, where he believed he answered between 70 and 80 items correctly but only answered 55 items correctly, illustrates overconfidence. This is a phenomenon where an individual has more confidence in their ability or knowledge than is warranted by the situation, often leading to them overestimating their performance or abilities.
Overconfidence vs. Underconfidence
Underconfidence would be the opposite scenario, where an individual underestimates their abilities or knowledge. Accuracy in this context would mean how close Steve's belief was to his actual performance, which was not very close in this case. Precision refers to the consistency of an outcome, not relevant in the context of Steve's belief about a single test performance.