After Media Coverage of Two Spectacular Train Crashes, People Overestimated

question 401

Multiple Choice

After media coverage of two spectacular train crashes, people overestimated the probability of being killed or injured in a train crash and exaggerated the dangers of train travel. This example illustrates:

• A) the availability heuristic.
• B) functional fixedness.
• C) the representativeness heuristic.
• D) mental set.

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Definitions:

9%

An interest rate or percentage that signifies a nine percent value attached to financial products or calculations.

Compounded Semi-Annually

The process of adding interest to the principal sum twice a year, where interest earns more interest in subsequent periods.

Compounded Quarterly

Interest is calculated four times a year on the initial principal and the added interest from previous periods.

20 Years

A period or duration of two decades.