Even When People Are Shown Nothing but a Random Mix

question 87

Multiple Choice

Even when people are shown nothing but a random mix of results, they still like to believe one outcome is more likely than the other. This is tendency illustrates a concept known as

• A) the self-fulfilling prophecy.
• B) the representativeness heuristic.
• C) illusory correlation.
• D) social overconfidence.

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets.

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Inventories

Assets held for sale in the ordinary course of business, or goods that will be used or consumed in the production of goods to be sold.

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.