Four of the Last Five Stocks Your Investment Adviser Recommended

question 9

Multiple Choice

Four of the last five stocks your investment adviser recommended have outperformed the market. Thus, you believe that if you continue to follow her advice, 80 percent of your investments will outperform the market over the long term. This belief is based on the:

• A)gambler's fallacy.
• B)law of small numbers.
• C)law of large numbers.
• D)clustering illusion.
• E)positive performance illusion.

---

Definitions:

Confidence Interval

A variety of values coming from collected sample information, presumed to hold the value of an unknown parameter within the population.

Service Time

Service time refers to the amount of time required to complete a particular task or service, often used in the context of customer service or manufacturing.

Sample Means

The average value of a set of observations taken from a population, used as an estimate of the population mean.

Public Service Jobs

Employment positions within governmental organizations or agencies serving the public, often focused on providing administrative, healthcare, educational, or safety services.