Nea Lives in Atlanta, GA, and Learned That There Was

question 88

Multiple Choice

Nea lives in Atlanta, GA, and learned that there was a tornado watch issued for a nearby county. In deciding whether to follow tornado safety protocols and seek appropriate shelter in her home, she remembers the recent news broadcasts and images from tornado outbreaks in nearby Nashville, TN, and Tuscaloosa, AL. She quickly decides to hide in the bathtub of her windowless bathroom for the night. Her choice was the result of the:

• A) representativeness heuristic.
• B) better-than-average effect.
• C) availability heuristic.
• D) confirmation bias.

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Definitions:

Discount

A reduction in the price of goods or services offered to customers, usually as a motivation to encourage sales.

Discount on Bonds Payable

This term refers to the difference between a bond's face value and its selling price when the bond is sold for less than its face value.

Contract Rate

The agreed-upon interest rate specified in a contract, particularly relevant in loans and financing agreements.

Market Rate

The current price or interest rate at which goods, services, or securities are bought and sold in a competitive marketplace.