People in a good mood tend to overestimate the likelihood that good events will occur and underestimate the occurrence of bad events.

Question

Edward Spencer · Accepted Answer

Final Answer : True, Explanation :  This phenomenon is known as the optimism bias, where individuals in a positive emotional state are more likely to expect positive outcomes and downplay the likelihood of negative events.

People in a good mood tend to overestimate the likelihood that good events will occur and underestimate the occurrence of bad events.

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