Suppose you own a small fast-food store in a large shopping mall. You hired a manager six months ago so that you could open another store in a new location. The financial performance over the last six months has not been as good as it was when you managed the outlet. The manager, who seems to be overly optimistic about the store’s performance, has given you a spreadsheet forecasting large increases in sales and decreased costs over the next six months.

REQUIRED
A. In your own words, describe information bias, cognitive bias, and predisposition bias.
B. Are the manager’s forecasts of sales and costs likely to be biased? Explain.
C. Identify ideas for checking the reliability of the revenue and cost estimates.