The Tendency to Look for Evidence in Support of a Belief

question 109

Multiple Choice

The tendency to look for evidence in support of a belief and to ignore evidence that would disprove a belief is called the ________.

• A) representativeness heuristic
• B) idealized cognitive model
• C) confirmation bias
• D) availability heuristic

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Definitions:

Customer Level Operating Profit

Customer Level Operating Profit refers to the profit earned from a customer, after deducting operating expenses directly associated with serving that customer.

Length of Customer Relationship

The duration over which a business maintains a relationship with an individual customer, significant for understanding customer loyalty and value.

Economies of Scale

Economies of scale are cost advantages that businesses obtain due to scale of operation, with costs per unit of output decreasing with increasing scale.

Discount Rate

The interest rate charged by central banks on loans extended to financial institutions or the rate used in discounted cash flow analysis to determine the present value of future cash flows.