The More We Think on Our Theories and Elaborate on How

question 33

Multiple Choice

The more we think on our theories and elaborate on how they might be true, the less open we are to outside information that challenges our beliefs. This statement is best explained by

• A) belief perseverance.
• B) the misinformation effect.
• C) priming.
• D) the overconfidence phenomenon.

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Definitions:

Coin Flip

A simple probabilistic experiment used to make a decision or determine an outcome with a 50/50 chance of occurring.

Technical Analysts

Financial experts who evaluate securities by analyzing statistics generated by market activity, such as past prices and volume, to forecast future price movements.

Trendlines

Lines drawn on stock or financial charts that indicate the general direction of price movement, used by traders to assess market trends and make decisions.

Resistance Levels

A price level at which selling is thought to be strong enough to prevent the price from rising further.