Of the Following Real-World Phenomena,the Confirmation Bias Best Explains the Observation

question 62

Multiple Choice

Of the following real-world phenomena,the confirmation bias best explains the observation that people

• A)do not always make decisions that maximize their monetary outcome.
• B)are more likely to purchase meat advertised as 80% fat free than 20% fat.
• C)misjudge homicide as more prevalent in the U.S.than suicide.
• D)can cite several reasons for their position on a controversial issue but none for the opposing side.

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Definitions:

Credit Default Swaps

Financial derivatives that allow an investor to swap or offset their credit risk with that of another investor.

Insurance Contract

A legal agreement between an insurance company and the policyholder, which specifies the terms for the payment of insurance benefits.

Default

Failure to fulfill a financial obligation, especially failing to make payments on a loan, bond, or other debt instrument.

Nonfinancial Businesses

Companies primarily engaged in activities other than financial services, such as manufacturing, services, or retail.