We tend to make information-processing errors because of our biases:
Overconfidence (a tendency to overestimate the precision of our forecasts and abilities)
Conservatism (when we are too slow or too conservative to update our beliefs in response to new evidence)
Sample size neglect and representativeness (not taking into account sample size, acting as if a small sample is representative of a larger population)
Discuss a time when you have experienced overconfidence, conservatism, or representativeness in your financial or business decision making. Pick one—you do not have to discuss all three behavioral biases.