3. 'Entrepreneurs frequently appear to have an overstated sense of their own abilities and may jump into new business ventures with inadequate regard for the competition and the size of the market'. Which of the following factors illustrate how overconfidence' explains why so many business startups fail in the first few years? a) they make inadequate plans for early years capital adequacy (liquid funds) b) underestimating the degree of market competition (over-estimate early sales) c) too many entrepreneurs are male ... 4. Confirmation bias refers to the tendency to see data the way we want to see it. Which of the following is NOT true: a) We are most likely to believe what we think is already true. b) People see what they want to, usually. c) We tend to accept evidence that goes against what we think is true and reject evidence that supports it. 5. It has long been known that we tend to over-insure small risks - and under-protect ourselves against genuine, larger ones. Which of the following statements also involve other cognitive or reasoning errors? a) UK adults are twice as likely to insure their pets as they are to insure themselves. b) 'humans don't find it easy to think clearly about risk'. c) 'spread betting is not gambling -1 know what I am doing