The Recency Effect Occurs When a Person's Annual Performance Evaluation

question 142

True/False

The recency effect occurs when a person's annual performance evaluation is heavily influenced by performance results over the last month.

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Definitions:

Depreciates

The process of an asset losing value over time due to use, wear and tear, or obsolescence.

Depreciated Value

The reduced worth of an asset over time due to wear and tear or obsolescence.

Increasing Annuity

A type of annuity payment that grows at a certain rate or percentage over time.

Compounded Monthly

A specific type of compounding where interest is calculated and added to the principal balance monthly.