Across Many Different Contexts and Settings, People Prefer to Attribute

question 173

Multiple Choice

Across many different contexts and settings, people prefer to attribute their successes to ability and effort but tend to attribute their failures to bad luck or task difficulty. This is known as ____.

• A)the self-serving bias
• B)correspondence bias
• C)a fundamental attribution
• D)the heuristic effect

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the total present value of its expected future cash flows minus the initial investment cost.

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Present Value

The present worth of a future amount of money or series of cash flows, calculated using a given interest rate.

Annuity

A series of equal cash flows at fixed intervals.