Last Week, Mike Heard About Five Separate Airplane Crashes on the News

question 87

Multiple Choice

Last week, Mike heard about five separate airplane crashes on the news. Even though, overall, motorcycle accidents account for more accidents than plane crashes do, Mike decides to ride his motorcycle from Philadelphia to Atlanta instead of flying. Which bias is reflected in Mike's decision?

• A)the confirmation bias
• B)the availability heuristic
• C)the representativeness heuristic
• D)the framing effect

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Definitions:

National Credit Cards

Credit cards that are accepted across a specific country, offering users the ability to borrow funds up to a pre-approved limit for purchases or cash advances.

Allowance Method

An accounting technique that companies use to account for bad debts by predicting what percentage of outstanding accounts will become uncollectible.

Bad Debt Expense

An anticipated expense account reflecting the estimated amount of receivables that a company does not expect to collect.

Finance Company

A business that provides loans to individuals and companies, apart from traditional bank lending activities, including consumer credit, leasing, and investment financing.