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Survivorship Bias

Survivorship Bias

Survivorship bias can bring about overly optimistic values because failures are generally ignored, such as as soon as companies that don’t exist are omitted from analyses associated with financial performance. It can also lead to false belief how the successes in a bunch have some special property, rather than coincidence. For example, if three of the five students with all the best college grades attended the same school, that can lead anyone to believe that the school must offer an excellent education.