When People Base Their Estimates of the Likelihood of an Event

question 258

Multiple Choice

When people base their estimates of the likelihood of an event on how often they've heard of such an event, they illustrate the

• A)confirmation bias.
• B)framing effect.
• C)hindsight bias.
• D)availability heuristic.

---

Definitions:

Basis

The original value or cost of an asset for tax purposes, used to determine capital gains or losses.

FMV

Stands for Fair Market Value, which is the price an asset would sell for on the open market, where both buyer and seller have reasonable knowledge of the asset and are willing to trade without pressure.

Basis

The amount of an investment in property for tax purposes; the starting point for determining gain or loss.

Recognize Gain

The process of reporting the profit from a sale or exchange of an asset for tax purposes.