All of the Following Are True About Illusory Correlations EXCEPT

question 60

Multiple Choice

All of the following are true about illusory correlations EXCEPT which statement?

• A)They are based on a kernel of truth.
• B)They generally occur when two are things are rare and co-occur in close proximity.
• C)When strange or unusual things co-occur,our mind automatically assumes a connection.
• D)They generally occur when two are things are distinctive and co-occur in close proximity.

---

Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund a company or produce more wealth.

Permanent Investment

Investments a company intends to hold for a long duration, typically exceeding one year, for earning dividends or interest income.

Owner's Equity

The total value remaining in a business after all liabilities are subtracted from assets; also known as shareholders' equity.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owner's claim against the company's assets.