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SCENARIO 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying,and whether they did well or poorly on the midterm.The following result was obtained.
-Referring to Scenario 4-2,the events "Did Well on Midterm" and "Did Poorly on Midterm" are
Overconfidence
A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy, often leading to riskier financial decisions.
Affect Heuristic
A mental shortcut that influences the way people make decisions based on their emotions and feelings.
Loss Aversion
A behavioral finance concept that describes the tendency for people to prefer avoiding losses to acquiring equivalent gains.
Financial Markets
Platforms or environments where buyers and sellers trade financial securities, commodities, and other fungible items of value.
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