Lex Voted for Dean to Be the Class President at His

question 83

Multiple Choice

Lex voted for Dean to be the class president at his university this year.He believes that approximately 40 percent of people at his university did as well.In reality,closer to 20 percent of voters chose Dean.What concept does Lex's overestimation illustrate?

• A) the false-consensus effect
• B) the confirmation bias
• C) counterfactual thinking
• D) the covariation principle

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage; it measures how efficiently a company uses its resources to make products.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a selected activity base such as machine hours or labor hours.

Machine-Hours

A unit of measure that represents the operational time of a machine, often used to allocate manufacturing overhead costs to products.

Unused Capacity

The available production or service facility that is not being used or is underutilized.