If Someone Estimates That More People Die from Tornadoes Than

question 11

Multiple Choice

If someone estimates that more people die from tornadoes than from asthma each year because that person has seen a lot of media coverage of people killed by tornadoes, then that person is:

• A) correct in the estimate made.
• B) probably making an inaccurate estimate based on representativeness.
• C) incorrect and adjusting insufficiently from the anchoring information.
• D) probably making an inaccurate estimate based on availability.

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Definitions:

Compounded Annually

Interest calculation method where interest is calculated on the initial principal as well as the interest accumulated over previous periods, applied once per year.

Annual Sales

The total revenue generated from sales activities over the course of one year.

Compounded Semiannually

A method where interest payments are made on an investment or loan twice each year, leading to interest being earned on previously earned interest.

Annually Compounded

Pertaining to interest on investment or loans that is calculated once a year, adding to the sum each year.