Nikki Is in the Second Grade and Is Given the Following

question 484

Multiple Choice

Nikki is in the second grade and is given the following problem to solve: John has 15 apples, Amy has 10 apples, and Chris has 5 apples.How many apples do John and Chris have altogether? Nikki adds the apples for all three people, using the irrelevant information about Amy's number of apples.Thus, according to Davidson, Nikki is displaying a lack of

• A) selective attention.
• B) selective comparison.
• C) selective encoding.
• D) selective combination.

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Definitions:

Market Interest Rate

The prevailing rate of interest that is available on investments, influencing the cost of borrowing and lending money.

Periodic Bond Interest

Regular interest payments made to bondholders during the life of a bond.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Bond Discount Account

An accounting term representing the difference between the face value of a bond and its selling price when sold at less than its face value.