How Does the Fundamental Attribution Error (FAE) Differ from the Actor-Observer

question 87

Multiple Choice

How does the fundamental attribution error (FAE) differ from the actor-observer effect (AOE) ?

• A) They make opposite predictions.
• B) They make similar predictions, but the FAE focuses on attributions that we make about others, while the AOE concerns attributions that we make about ourselves.
• C) They make similar predictions, but the FAE focuses on attributions that we make about ourselves, while the AOE concerns attributions that we make about others.
• D) They make similar predictions, but the FAE focuses on attributions that we make about others, while the AOE concerns attributions that we make about others AND attributions that we make about ourselves.

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Definitions:

Available-for-Sale Debt Securities

Debt securities not classified as held-to-maturity or trading securities, recorded at fair value and subject to changes in the income statement upon realization.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, profits, or losses.

Trading Securities

Financial instruments that are purchased primarily for selling in the near term with the intention of generating profit from short-term price fluctuations.

Fair Value

The amount one would get from selling an asset or the cost to transfer a liability during a well-structured deal between participants in the market at the time of evaluation.