ICAEW SE · Chapter 7 · Question 10 of 18
A finance manager believes that a new product has been a success. When reviewing sales data, she focuses on the regions with strong sales and pays little attention to regions where sales have been poor. Which bias is she showing?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Confirmation bias
Explanation
Confirmation bias is the tendency to favour information that supports an existing belief and to underweight information that contradicts it. Recognising this bias helps accountants seek out and consider evidence fairly, which is essential for informed judgements and reliable communication with stakeholders.
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