Estimates Using the Arithmetic Average Will Probably Tend to _____

question 18

Multiple Choice

Estimates using the arithmetic average will probably tend to _____ values over the long-term while estimates using the geometric average will probably tend to _____ values over the short-term.

• A) overestimate; overestimate
• B) overestimate; underestimate
• C) underestimate; overestimate
• D) underestimate; underestimate
• E) accurately; accurately

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Definitions:

Lab-Based

pertains to research or experiments conducted in a controlled, indoor setting, typically in a laboratory.

Bias

A tendency to think in a certain way or to follow certain procedures regardless of the facts of the matter.

Mental Representation

The mind's ability to hold a mirror to the world by representing objects, events, or states of affairs internally.

Recalled

Brought back into one's mind; remembered.