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:

Liability

A legal obligation or responsibility for the consequences of one's actions, potentially resulting in payment or other remedies in a legal context.

Capital

Financial assets or resources that individuals or organizations use to fund their operations and invest in their growth.

Competitors' Organization

A structured group or business that competes in the same industry or market as another business.

Shareholders Approval

A formal consent given by shareholders, typically through voting, for certain actions or decisions proposed by a company's management.