Chapter $11$ discusses cognitive$/$behavioural biases. Consider I. Apruv is estimating the

inputs to a series of capital budgeting projects. The concern is that some biases may be

creeping into the analysis. Consider each of the following biases and indicate how it

might impact the input values, the interpretation of the risk analysis, the decision, the

project value, or the value of the options $($abandon$,$ expand, etc.$)$ or if the bias should

have no impact.

a$)$ Optimism Bias

b$)$ Anchoring

c$)$ Confirmation Bias

d$)$ Commitment Bias

e$)$ Base Rate Neglect