Question

Shin Kang's stockbroker tells him that he has lost a lot of money on his stocks. When Shin tells his wife, she angrily responds, "I could have told you that your stocks would lose money!" Her comment is an example of ___?

a) Confirmation bias
b) Hindsight bias
c) Overconfidence
d) Self-serving bias

Answer 1

The comment made by Shin's wife, expressing anger and stating that she could have predicted the loss of money on his stocks, is an example of hindsight bias.

Step-by-step explanation:

The comment made by Shin's wife, expressing anger and stating that she could have predicted the loss of money on his stocks, is an example of hindsight bias. Hindsight bias refers to the tendency to believe that an outcome was predictable or that we knew it all along, after it has occurred. In this case, Shin's wife is claiming to have known that the stocks would lose money, even though it is unlikely that she actually had that foresight.