Question
A number of experts were asked to make a forecast and give their 95% confidence interval. When the true value was given, only half of
A number of experts were asked to make a forecast and give their 95% confidence interval. When the true value was given, only half of the experts had the appropriate answer within their confidence interval. Describe the bias that the experts are exhibiting and explain why it is a bias that a rational agent would not make.
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
