The Easier It Is for People to Remember an Instance

question 131

Multiple Choice

The easier it is for people to remember an instance in which they were betrayed by a friend,the more they expect such an event to recur.This best illustrates the impact of

• A) framing.
• B) confirmation bias.
• C) an algorithm.
• D) the availability heuristic.

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Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period.

Annual Revenue

The total amount of money earned from the sale of goods or services in a fiscal year before any expenses are subtracted.

Annual Expenses

The total amount of money spent or costs incurred by a business or individual in a one-year period.

Capital Budgeting

The process by which an organization evaluates and selects long-term investments that are in line with their goal of wealth maximization.