Clustering Illusion Causes Us to See Patterns from a Small

question 78

True/False

Clustering illusion causes us to see patterns from a small sample of events, when in fact those events are random.

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Definitions:

Trend Analysis

The practice of collecting information and trying to spot a pattern, often used in technical analysis of financial markets or analysis of historical data in various fields.

Causal Relationship

A connection between two variables where a change in one directly causes a change in the other.

R&D Expenditures

Costs associated with the investigation and testing of new products or innovations.