When We Use the Availability Heuristic, We Estimate the Likelihood

question 3

True/False

When we use the availability heuristic, we estimate the likelihood of an event on the basis of how readily available other instances of the event are in our memory.

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Definitions:

Variable Cost

A cost that changes in proportion to the level of output or activity in a business.

Monthly Interest Rate

The percentage of interest that is charged or earned on a principal amount on a monthly basis.

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.

Annual Percentage Rate

A measure of the cost of borrowing, including interest and other fees, represented as a yearly rate and providing a comprehensive view of the loan cost.