Investing with AI (eBook) - 39. The Overconfidence Bias in Finance: How Excessive Data Can Lead to Misguided Decisions
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In the world of finance, data-driven decision-making has become increasingly important. The availability of vast amounts of data has led many to believe that more data is always better. However, this assumption can be misleading and result in the overconfidence bias. This cognitive bias occurs when decision-makers overestimate the accuracy and reliability of their judgments, often due to an abundance of seemingly relevant data. In this context, it is essential to understand the implications of the overconfidence bias and how to mitigate its impact on financial decisions.
Investing with AI (eBook) - 39. The Overconfidence Bias in Finance: How Excessive Data Can Lead to Misguided Decisions
Investing with AI (eBook) - 39. The…
Investing with AI (eBook) - 39. The Overconfidence Bias in Finance: How Excessive Data Can Lead to Misguided Decisions
In the world of finance, data-driven decision-making has become increasingly important. The availability of vast amounts of data has led many to believe that more data is always better. However, this assumption can be misleading and result in the overconfidence bias. This cognitive bias occurs when decision-makers overestimate the accuracy and reliability of their judgments, often due to an abundance of seemingly relevant data. In this context, it is essential to understand the implications of the overconfidence bias and how to mitigate its impact on financial decisions.