Basing the Estimated Probability of an Event on the Ease

question 232

Multiple Choice

Basing the estimated probability of an event on the ease with which instances come to mind is called the ​

• A)law of small numbers.
• B)representativeness heuristic.
• C)conjunction fallacy.
• D)availability heuristic.

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Definitions:

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or virtual territory, typically subject to the same political authority and dominant cultural expectations.

Marginal Revenue

The extra income generated from selling one additional unit of a product or service.

Marginal Cost

The rise in expense associated with the production of one more unit of a product or service.

P > MC

A condition where the price (P) of a good is greater than the marginal cost (MC) of producing it, typically indicating the potential for profit.