Which of the Following Is an Example of the Conjunction

question 19

Multiple Choice

Which of the following is an example of the conjunction fallacy?

• A)The probability of two events occurring together is thought to be higher than the probability of either event occurring alone.
• B)Two events happening in conjunction is thought to be impossible if they are mutually exclusive.
• C)A rare event is perceived to have a higher chance of happening to someone if the event is good (say winning the Powerball Lottery) vs.a rare event that is not good (say getting struck by lightening).
• D)None of the above.

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Definitions:

Stock of the Economy

The stock of the economy refers to the total value of all assets and investments available within an economy at a given time.

Expected Standard Deviation

A measure of the amount by which an asset's return is expected to deviate from its average return, used as an indicator of the risk associated with the asset.

Probability Distribution

A function used in statistics to illustrate all potential outcomes and their respective probabilities for a random variable within a fixed range.

Stock of the Economy

This term typically refers to the total value of all goods and resources available in an economy at a given point in time.