Why Does the Availability Heuristic Sometimes Lead to Incorrect Inferences

question 86

Multiple Choice

Why does the availability heuristic sometimes lead to incorrect inferences?

• A) What is easily brought to mind may not be typical of the big picture.
• B) People wrongly assume that correlation implies causation.
• C) What looks like the typical case may not be representative of the typical case.
• D) People are far better at making inferences about themselves than about others.

---

Definitions:

Separate Taxable Entity

An entity that is recognized as separate from its owners for tax purposes, such as a corporation, and therefore must file its own tax returns.

Ownership Interest

A portion or share in the ownership of assets, such as real estate or a company, affording the holder certain rights like income or control.

General Partners

Individuals or entities that participate in the management of a partnership and have unlimited personal liability for the debts and obligations of the partnership.

Limited Partners

Individuals in a partnership who have limited liability to the extent of their investment in the company and do not participate in day-to-day management.