Question: Up until three years ago, A . C . Dime opened an average of 1 0 new retail stores a year. One of every 1

Up until three years ago, A.C. Dime opened an average of 10 new retail stores a year. One of every 10 new stores had to be closed within two years due to poor sales. This 90 percent success ratio was fairly steady for over 30 years. Starting three years ago, the firm has opened 40 new stores and every one had significant profits within six months. Management believes their recent success is not just a random event and that all future stores will be profitable. Thus, the managers have decided to open a minimum of 15 new stores each year. The managers are suffering from:Arbitrage limitations.The clustering illusion.Aversion to ambiguity.Anchoring and adjustment.Myopic aversion.
Up until three years ago, A . C . Dime opened an

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