When You Approach a Traffic Light and See a Red

question 48

Multiple Choice

When you approach a traffic light and see a red light, you stop. On the other hand, when you approach that same light and see a green light, you continue driving. This example illustrates ​

• A)stimulus generalization.
• B)extinction.
• C)stimulus discrimination.
• D)spontaneous recovery.

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Definitions:

Conditional Probability

The probability of one event occurring with some relationship to one or more other events.

Real Option

A choice available to companies involving business decisions on investments, which use the concept of option valuation in financial markets.

Scenario Analysis

A process of analyzing future events by considering alternative possible outcomes (scenarios), often used in the assessment of risk or strategic planning.

NPV

Net Present Value, a calculation used to estimate the profitability of an investment or project by summing the present values of all expected future cash flows.