When Baseball's Rookie-Of-The-Year Has a More Ordinary Second Year, We

question 126

Multiple Choice

When baseball's rookie-of-the-year has a more ordinary second year, we shouldn't be surprised. This fact is easily explained by

• A) illusory correlations.
• B) the base-rate fallacy.
• C) the illusion of control.
• D) regression toward the average.

---

Definitions:

Market Price

The present cost at which a good or service is available for purchase or sale.

Transfer Price

The price at which goods and services are transferred between departments or subsidiaries of the same company, often used for accounting and tax purposes.

Market Price Approach

A valuation method that estimates the price of an asset based on the current market prices of similar assets.

Decentralization

The distribution of decision-making authority to lower levels in an organization, allowing for more localized and faster decision processes.