What Does the Availability Heuristic Suggest

question 43

Multiple Choice

What does the availability heuristic suggest?

• A)the probability of two united events cannot be greater than the probability of one or the other separately
• B)events that are typical of a class are assigned a high probability of occurrence
• C)the probabilities of states of nature are unknown
• D)if relevant examples can readily be retrieved from memory, then the class of events must occur with a high probability

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Definitions:

Rights Offering

A method by which a company raises capital by giving its existing shareholders the right to purchase additional shares directly from the company at a specified price within a set time.

Record Date

The specified date on which a company determines the shareholders eligible to receive a dividend or distribution.

Ex-rights Date

The ex-rights date is the first trading day when the buyer of a stock is not entitled to receive a previously declared rights offering, often leading to a decrease in the stock's price.

Venture Capital

Venture capital is financing provided to startups and small businesses with strong growth potential by investors seeking high returns.