Malcolm Has Been Watching a Roulette-Type Game at a Local

question 40

Multiple Choice

Malcolm has been watching a roulette-type game at a local charity bazaar. The game has only ten numbers on the wheel, and every number except 8 has come up as a winner during the last 15 minutes. Malcolm decides to bet R10 on number 8, because it has to come up eventually. In this case, Malcolm is showing evidence of

• A) the availability heuristic.
• B) the gambler's fallacy.
• C) the base rate fallacy.
• D) the conjunction fallacy.

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Definitions:

Revenues And Expenses

Revenues and expenses refer to the income earned from normal business operations and the costs incurred to generate that income, respectively, impacting a company's net income.

Operating Activities

Part of cash flow analysis, these involve the core business activities of a company including production, sales, and delivery of its product or service.

Long-Term Borrowing

Loans or debts obtained with repayment schedules extending over a period longer than one year.

Dividends Paid

A corporation's distribution of earnings to its shareholders, generally as a profit allocation.