An Apartment Building Sells for $600,000 and Has a Gross

question 58

Multiple Choice

An apartment building sells for $600,000 and has a gross rent multiplier of 6.0.how much annual rent does the building produce?

• A) $60,000
• B) $100,000
• C) $10,000
• D) $36,000

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Definitions:

Confirmation Error

A cognitive bias that involves focusing on information that confirms one’s preconceptions and ignoring information that contradicts them.

Anchoring and Adjustment Bias

A cognitive bias where individuals rely too heavily on the first piece of information received (the "anchor") when making decisions.

Representativeness Bias

A cognitive bias where individuals inaccurately judge the likelihood of an event by comparing it to an existing prototype in their minds.

Ideation Step

The phase in a creative or problem-solving process where ideas are generated.