Q10 - Who is most likely correct concerning how to deal with the ambitious earnings guidance and the behavioral biases of cole & gam’s management team?
According to the answer, the management team has been exhibiting cognitive bias (best solution would be using systematic research approach). This makes sense to me.
My question is what kind of cognitive bias is the management team exhibiting? From my understanding, I interpreted that the management team was exhibiting “Overconfidence” which is an emotional bias. (“They tend to be overconfidence with an inclination to overestimate the outcome”)
Thank you very much