You Are Taking a University Course with a Combined Graduate

question 165

Multiple Choice

You are taking a university course with a combined graduate and undergraduate enrollment. You know that there are many more undergraduate than graduate students enrolled in this course. There is a woman who looks to be about thirty sitting next to you. If you use only the base rate to guess her student status, you would guess that she is a(n) __________ student because __________.

• A) graduate; she's older
• B) undergraduate; you have a bias to expect undergraduates in your courses
• C) graduate; she fits your schema for graduate students
• D) undergraduate; there are more of them enrolled in the class

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Definitions:

Market Signals

Indications or signs derived from market data that can suggest the future direction of market prices.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Corporate Governance

A system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.

Financial Intermediary

An institution that acts as a middleman between investors and borrowers, facilitating the flow of funds in the financial market.