The Tendency to Ignore Larger Statistical Deviations on Smaller Sample

question 50

Multiple Choice

The tendency to ignore larger statistical deviations on smaller sample sizes as compared to larger ones is a characteristic of which reasoning heuristic?

• A)availability
• B)overconfidence
• C)illusory correlation
• D)representativeness

---

Definitions:

Time-Driven Activity Rate

This involves calculating cost driver rates based on the time required to complete activities, used in activity-based costing.

Time-Driven

A method or approach that is based on the allocation of time to tasks or activities, often used in costing methodologies to allocate resources or in project management for scheduling.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or activities based on their consumption of resources.

Processing Orders

The activities involved in fulfilling customer requests for goods or services.