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Explain Illusory Correlation and Show How the Availability and Representativeness

question 11

Essay

Explain illusory correlation and show how the availability and representativeness heuristics are relevant to this phenomenon.


Definitions:

Company Profits

The financial gain that a company achieves after all expenses, taxes, and costs have been subtracted from total revenue.

Time-Series Graph

A two-variable graph that has dates on the horizontal axis and values of a variable that occurred on those dates on the vertical axis.

Seasonally Adjusted

A statistical technique used to remove seasonal variations from a data series to more clearly analyze trends.

Unemployment Rate

The fraction of individuals in the labor force who are without jobs and are searching for employment.

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