Which of the Following Best Describes the Availability Heuristic

question 59

Multiple Choice

Which of the following best describes the availability heuristic?

• A)People underestimate their own contributions to shared problems.
• B)People overestimate the likelihood of events that easily come to mind and underestimate those that don't.
• C)When no information is available, people's brains fill in erroneous details.
• D)Media coverage can influence what is available in people's memories.

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Definitions:

Financial Leverage

Financial leverage is the use of borrowed funds to increase the potential return of an investment.

Breakeven Analysis

A financial calculation to determine the point at which revenue and expenses are equal, resulting in no net loss or gain.

Financial Leverage

The use of borrowed funds to finance the purchase of assets with the expectation that the income or capital gain from the new assets will exceed the cost of borrowing.

EBIT

A measure of a firm's profit that disregards expenses from interest and income taxes, termed as Earnings Before Interest and Taxes.