The Mistake of Inferring Causality from Two Events Happening One

question 199

Multiple Choice

The mistake of inferring causality from two events happening one after the other is called

• A) the post hoc, ergo propter hoc fallacy.
• B) the fallacy of composition.
• C) Ockham's razor.
• D) the fallacy of co-dependence.

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Definitions:

Double-declining-balance

A method of accelerated depreciation where the depreciation expense decreases over time, doubling the rate of straight-line depreciation.

Salvage Value

The forecasted resale price of an asset at the end of its service life.

Depreciation Expense

An accounting method used to allocate the cost of a tangible or physical asset over its useful life, reflecting wear and tear, deterioration, or obsolescence of the asset.

Straight-line Method

A method of calculating depreciation for an asset, spreading the cost evenly over its useful life.