4. Overconfidence does not quickly dissipate via learning because of the
existence of contributing biases. Explain.
Self-attribution bias, the tendency for people to attribute successes or good outcomes to
their own abilities, while blaming failures on circumstances beyond their control, can
5. In 2007 the New England Patriots (an American football team) had a
banner year winning all 16 regular season games. In these 16 games their
points were: 38, 38, 38, 34, 34, 48, 49, 52, 24, 56, 31, 27, 34, 20, 28, and 38.
Despite this obvious success, their fans were still a bit overconfident going
into the playoffs. The consensus among fans was that they would average
50 points per game in the playoffs. Plus their fans were 95% sure that they
would be within five points of this number (45 to 55). Illustrate the
dimensions of their overconfidence. (For the purpose of this question,
assume the Patriots participated in four playoff games.)
As in question 3, both miscalibration and excessive optimism are present. To illustrate,