Question

Your friend Karma Wilson is a typical college student. She works part time while going to school full time pursuing a degree in Finance. Karma makes decent money as a waitress at Butchers Union and responsibly saves some of her earnings for rainy day fund. However, when it comes to tax refund time, Karma typically uses her tax refund for trips to Four Winds casino or to splurge on a tech gizmo. What type of behavioral bias does this example represent?

Answer 1

Answer : Behavioural basis has been defined as psychological of person in doing or performing some tasks in logical and systematic manner. It provides relevant and logical decisions should be taken in systematic manner. Karma has optimistic behaviour as she is utilising her time and money in best possible manner.she used the resources logical and there is no deployment of resources in systematic manner.

Karma should also saved money for the rainy money fund and enjoy her holiday as the tax refund has been utilised in a logical and systematic manner.The money should be utilized logical and resources should be used on best possible manner.