Question
Why is confirmation bias dangerous when revising projections after new information arrives?
Tap to flip
Answer
It favors supporting evidence and ignores disconfirming signals.
Tap to flip back
Question
Why does status quo bias often cause forecasting mistakes at industry turning points?
Tap to flip
Answer
It assumes current conditions persist despite likely change.
Tap to flip back
Question
What is the best mitigation for confirmation bias in an analyst's model review?
Tap to flip
Answer
Actively seek disconfirming evidence.
Tap to flip back
Question
Under deflation, what happens to the real burden of debt, and why does it matter for forecasts?
Tap to flip
Answer
It increases, raising financial strain and downside risk.
Tap to flip back