If You Polled Some Friends About the Number of Murders

question 187

Multiple Choice

If you polled some friends about the number of murders in New York City and other friends about the number of murders in the state of New York,you'd likely find that the average number of murders estimated for New York City is more than for the entire state.This impossible finding is best explained by the

• A)availability heuristic.
• B)confirmation bias.
• C)hindsight bias.
• D)tendency toward overconfidence.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, often relating to bonds or loans.

Investments-Tetter Company Bonds

Refers to financial assets representing the purchase of Tetter Company's debt securities as an investment.

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Retained Earnings

Profits that a company keeps or retains after paying dividends to shareholders, which are often reinvested in the business or used to pay down debt.