Garys Gumbo is a locally owned restaurant in Houston, Texas, with eight locations. The owner recently developed

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Gary’s Gumbo is a locally owned restaurant in Houston, Texas, with eight locations. The owner recently developed a new recipe for the restaurant’s signature gumbo dish. The owner decided to try out the dish in four of the company’s locations. After one month, the owner had gathered the following data:

Locations with New Gumbo Recipe 2 Locations with Old Gumbo Recipe Location # Number of orders Number of customer complai


After looking over the data, the owner happily noted that the number of orders of the signature gumbo dish at the locations where the new recipe had been used (locations 1–4) had increased in comparison to the traditional number of orders of the dish (locations 5–8). The owner then decided to implement the new recipe at the rest of the company’s locations.

a. Evaluate whether the owner made the correct decision.

b. Identify which cognitive bias was likely at play in this situation, and describe how it occurred.

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Forensic And Investigative Accounting

ISBN: 9780808056300

10th Edition

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

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