Yves Is Called on in Class to Define the Representativeness

question 29

Multiple Choice

Yves is called on in class to define the representativeness heuristic.He answers that "it is a rule of thumb in which stimuli similar to an exemplar are believed to be more likely than stimuli that are dissimilar." Which part of his definition is incorrect?

• A)A rule of thumb
• B)Similar to an exemplar
• C)Believed to be more likely
• D)Stimuli that are dissimilar

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current market prices or valuations.

IFRS

International Financial Reporting Standards, a set of accounting principles for financial reporting used globally.

Equity Investments

Equity investments involve purchasing shares of stock in a company, representing partial ownership and the potential to earn returns through dividends and capital appreciation.

Amortized Cost

The initial investment cost adjusted for amortization or depreciation, representing the current book value of a financial asset or liability.