In the Context of Making Judgments About Likelihood and Goodness

question 7

Multiple Choice

In the context of making judgments about likelihood and goodness and badness, starting with an initial evaluation and adjusting it with additional information is referred to as _____.

• A) an accounting of mental judgment
• B) an anchoring and adjustment process
• C) an adjustable and precise cycle
• D) an evaluation of emotional accounts
• E) an estimation of likelihood

---

Definitions:

Standard Deviation

A metric that quantifies the spread or diversity among a collection of numbers.

Expected Return

The weighted average of all possible returns for an investment, considering the probabilities of each outcome.

Risk Averse

Describes an individual or entity's preference to avoid risk, where they prioritize certainty and are willing to accept lower returns in exchange for greater certainty or security.

High-Technology Stocks

These are shares in companies involved in high-tech industries, known for rapid innovation and growth potential but also higher risk.