Limited Problem Solving Usually Relies on

question 42

Multiple Choice

Limited problem solving usually relies on

• A)past experience more than on external information.
• B)situational stimuli and attitudes.
• C)external searches for information.
• D)financial analysis of performance risk.
• E)evaluation of the universal set.

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Definitions:

Investment

The allocation of resources, such as capital, time, or effort, in hope of generating a gain or profit in the future.

Fat Tails

Refers to the occurrences of extreme movements in stock prices or higher than normal risks in investments, which lead to heavy tails in a probability distribution.

Kurtosis

Measure of the fatness of the tails of a probability distribution. Indicates probability of observing extreme high or low values.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable about its mean.