If Our Experiences Include Some Unforgettable Events, We Might Overestimate

question 6

Multiple Choice

If our experiences include some unforgettable events, we might overestimate how often those kinds of events occur. This is called

• A)belief perseverance
• B)a confirmation bias
• C)the availability heuristic
• D)the a priori heuristic

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often reported as a non-operating expense on the income statement.