Experiments Suggest That People

question 8

Multiple Choice

Experiments suggest that people:
(i) lack confidence in their own abilities
(ii) give too much weight to a small number of vivid observations
(iii) interpret evidence to confirm beliefs they already have

• A)(i) only
• B)(i) and (ii)
• C)(i) and (iii)
• D)(ii) and (iii)

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Definitions:

Random Number Range

The interval within which random numbers can be generated, used in simulations and probabilistic models to represent unpredictable variables.

Monte Carlo Analysis

A computational algorithm that uses random sampling to obtain numerical results, typically used to solve problems that might be deterministic in principle.

Average Lead Time

The typical amount of time taken from the moment an order is placed until it is received, reflecting supply chain efficiency.

Poisson Distribution

A statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.