Which of the Following Is a Correct Explanation for Why

question 109

Multiple Choice

Which of the following is a correct explanation for why the hindsight bias exists?

• A)Once we know the outcome, we pretend we knew it was going to happen in order to make ourselves feel better.
• B)Once we know the outcome, we reinterpret old evidence to make sense of that outcome.
• C)Before we know the outcome, we ignore evidence that contradicts what we believe.
• D)Before we know the outcome, we have too much evidence to consider to make an accurate prediction.

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Definitions:

Weighted-Average Method

A method of costing inventory that allocates the mean cost of available goods for sale to the ending inventory and the cost of goods sold.

Assembly Department

A part of a manufacturing firm where parts are put together to create finished goods.

Work In Process Inventory

Goods partially completed during the manufacturing process, not yet ready for sale.

Units Transferred

The quantity of items moved from one stage of production or location to another within a given period.