Which of the Following Students' Statements Best Summarizes the Research

question 7

Multiple Choice

Which of the following students' statements best summarizes the research on the belief-bias effect?

• A) Petra: "The belief-bias effect shows us how top-down processing influences logical reasoning; we should emphasize the actual information in the reasoning problem."
• B) Chris: "The belief-bias effect illustrates how people systematically keep trying to confirm a hypothesis, rather than trying to disconfirm it."
• C) Josh: "According to the belief-bias effect, people systematically prefer a conclusion that is stated in the positive form, rather than a conclusion that uses the word not."
• D) Cynthia: "The belief-bias effect shows us that people draw conclusions in logical reasoning on the basis of how frequently their prior beliefs come to mind."

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Definitions:

Salvage Value

The calculated leftover value of an asset at the expiry of its service life.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation expense for an asset over its useful life.

Discount Rate

The interest rate used to discount future cash flows to present value, often in investment and finance calculations.

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time to evaluate an investment.