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The belief that Tuan's new jacket has magical powers due to finding money while wearing it is an example of illusory correlation. This phenomenon occurs when a person perceives a relationship between two unrelated events or items, attributing meaning or significance to them without evidence that a genuine connection exists. In Tuan's case, he connects the act of wearing the jacket with the fortunate outcome of finding money, even though there is no causal link between the jacket and the money. This cognitive distortion highlights how individuals can misinterpret random coincidences as correlations, leading them to develop beliefs or superstitions based on these false connections.

Other options, while related to cognitive biases, do not adequately fit this scenario: confirmation bias involves favoring information that confirms pre-existing beliefs, priming refers to the exposure to one stimulus influencing the response to another, and self-fulfilling prophecy entails a belief leading to its own fulfillment. Thus, illusory correlation best captures Tuan's reasoning in this context.