Decide Whether the Statement Makes Sense $0.25 \times \$ 500 = \$ 125$

question 125

Essay

Decide whether the statement makes sense. Explain your reasoning.
-Sheila is in the 25% tax bracket, so a $500 charitable contribution will reduce her total tax bill by $0.25 \times \$ 500 = \$ 125$

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Definitions:

Illusory Correlation

The belief in a correlation between two factors even though such a connection does not truly exist.

Magical Thinking

The belief that one's thoughts, words, or actions can directly influence the physical world or the course of events in an irrational way.

First Instinct Fallacy

The mistaken belief that an individual's initial answer to a question is more likely to be correct than any answer they might change it to upon further consideration.

False Consensus Effect

The tendency to overestimate the extent to which others share one's beliefs, attitudes, or behaviors.