If You Knew That Only One Per Cent of Inventors

question 42

Multiple Choice

If you knew that only one per cent of inventors actually have a handsome income you would have an example of:

• A) representativeness.
• B) the illusory correlation.
• C) regression to the mean.
• D) base-rate information.

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Definitions:

Financial Statements

Summarized records of a company's financial activities, presenting its financial position, performance, and cash flows over a certain period.

Face Value

The nominal or original value of a security or financial instrument as stated by the issuer, not including interest or dividends.

Principal

The initial amount of money borrowed or invested, excluding any interest or dividend.

Interest

The fee charged for borrowing money, often expressed as a percentage of the principal amount.