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a. Dorothy likes to invest in gold as part of her overall financial investment portfolio. Her instincts tell her it will increase dramatically in value.

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a. Dorothy likes to invest in gold as part of her overall financial investment portfolio. Her instincts tell her it will increase dramatically in value. Her favorite and only source of investment advice is Wizard's Gold Hour on the OZ cable channel. As a result of this advice, Dorothy's portfolio mix is suboptimal and too heavily weighted in gold. This is an example of the O planning fallacy. O framing effect. O availability heuristic. O confirmation bias. b. In anonymous surveys people tend to rate themselves as "above average" with regard to characteristics such as intelligence, perceptiveness, and driving ability. This is an example of the O overconfidence effect. O availability heuristic. O confirmation bias. O framing effect. c. John's friend Rosika won a major lottery jackpot. After seeing this, and despite the fact that millions of people don't win and the odds of winning are infinitesimal, John goes out and buys a bunch of lottery tickets despite struggling financially. This is an example of the planning fallacy. O availability heuristic, O confirmation bias. O framing effect

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