The Illusory Correlation Effect Occurs When We

question 234

Multiple Choice

The illusory correlation effect occurs when we

• A)incorrectly assume that one social trait is the cause of another, simply because we have observed that they are correlated.
• B)are motivated to accurately estimate the frequency with which some pattern of social traits occurs.
• C)see correlations between social traits that really aren't there, because our expectations distort our memories.
• D)fail to see true correlations between social traits, because our expectations distort our memories.

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Definitions:

Pay Scale Overlaps

Refers to situations where the salary ranges for different positions within an organization overlap, allowing for potential discrepancies in pay for roles of differing responsibilities.

Maximum Pay

The highest amount of money an organization is willing to pay for a particular job position.

Job Evaluation System

A framework used by organizations to assess and compare the responsibilities and value of jobs to ensure fair and equitable compensation.

Market Fit

The degree to which a product or service satisfies strong market demand.