THIS FOR MY BEHAVIORAL FINANCE CLASS SO FOR THE PPL SAYING THIS IS NOT A FINANCE QUESTION PLEASE DO NOT ANSWER IT IF YOU'RE NOT FAMILIAR WITH THIS TYPE OF FINANCE QUESTION --THANK YOU

• Bias Identification, please identify the biases and/or heuristics displayed by Professor French

People make a variety of mistakes when making decisions. These mistakes are generally associated with a host of biases that occur when we use judgmental heuristics which are rules of thumb shortcuts people use to reduce information processing demands. We often use them automatically without conscious awareness. Use of heuristics helps decision makers to reduce the uncertainty inherent in the decision-making process. Because these shortcuts are representative of knowledge we gained in the past, they are useful in evaluating current problems but can also lead to systematic errors that erode the quality of decisions. In this activity, you are asked to identify several common decision-making biases

2. While reviewing the most recent four quarters of earnings estimates for MMM, Professor French notices that earnings growth rates were 15% per quarter. He announces to the class that MMM is a growth company. Which type of bias or heuristic is Professor French falling victim too? Explain briefly.