Title: Analysis Paralysis Definition
Headings: Analysis Paralysis
Analysis Paralysis
What is Analysis Paralysis?
Key Takeaways
How Analysis Paralysis Works
Special Considerations

Content: Key Takeaways
Analysis paralysis happens when overanalysis or overthinking prevents an individual or group from making a decision. This phenomenon can occur when an individual is unsure of the best method for reaching a decision. In investing, analysis paralysis can lead to missed opportunities for gains or to losses. How Analysis Paralysis Works
Analysis paralysis can occur in both standard and complex problems. It is often the result of analysis that involves an undefined number of variables. In standard problems sets, an individual would expect to use basic logic or routine statistical analysis to examine facts related to a potential course of action. The resulting analysis would typically provide a clearly defined answer or pros and cons list with weight more heavily in one direction or another. Analysis paralysis may set in when an individual is unsure of the best practices for identifying an outcome. The situation or problem may also involve an undefined number of variables that result in an arbitrary outcome with a low degree of confidence. Thus, in some situations analysis paralysis may be the result of an undefined outcome.