When Using the Availability Heuristic, People Tend to Judge the Probability

question 24

Multiple Choice

When using the availability heuristic, people tend to judge the probability of an event based on:

• A) the need to be right, which makes it hard to listen to the available information with an open mind.
• B) statistical consideration of the frequency with which the event occurs in everyday life.
• C) the burden of doubt people feel about their abilities to determine probability from available information.
• D) how easy it is to think of examples or instances.

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Definitions:

Secretary of State

A high-ranking official in a state government responsible for maintaining public records and documents, among other duties, varying by country.

Limited Partner

An investor in a partnership who has limited liability to the extent of the amount of their investment and does not participate in the day-to-day management of the business.

Fiduciary

A person or organization that acts on behalf of another person or persons to manage assets, exhibiting a high standard of care, loyalty, and honesty.

Limited Partner

An investor in a partnership whose liability is limited to the amount of their investment, not involved in day-to-day management.