The Availability Bias Is a Bias in Reasoning Where Examples

question 49

Multiple Choice

The availability bias is a bias in reasoning where examples easily brought to mind are relied on to ______.

• A) help overcome representativeness bias
• B) make judgments and solve problems
• C) help randomize your decision making
• D) create a normative model of judgments

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Definitions:

Net Income

Net income is the total profit of a company after all expenses and taxes have been subtracted from total revenue.

Investments

Resources such as money put into buying financial instruments or other assets to gain profitable returns in the form of income, interest, or appreciation of value.

Accounts Payable

An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recorded as assets until they are consumed or the service is provided.