Overestimation of the Expected Length of the Feeling Produced by the Outcome

question 107

Multiple Choice

Overestimation of the expected length of the feeling produced by the outcome of a decision is called the:

• A) durability bias.
• B) affect heuristic.
• C) confirmation bias.
• D) anchoring heuristic.

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Definitions:

Generally Accepted Accounting Principles

A set of accounting standards and procedures used in the United States to govern financial reporting and ensure consistency across organizations.

Quality Of Earnings

An assessment of the degree to which a company's earnings are considered reliable or sustainable, and free from artificial inflation or deflation.

Profitability Ratios

Measures of the income or operating success of a company for a given period of time.

Operating Effectiveness

The efficiency with which a company utilizes its resources to produce goods or services and operates its business processes.