Vance Has Been Following the State Lottery for Over a Year

question 6

Multiple Choice

Vance has been following the state lottery for over a year, and he has a record of the number of times each number has been selected.He has noted that six of the possible numbers have only been selected four or five times in the entire year.He is planning to invest $1,000 in lottery tickets with that particular six-number combination because he is sure those numbers "are due." In this case, Vance is showing evidence of:

• A)the availability heuristic
• B)anchoring and adjustment
• C)framing
• D)the representativeness heuristic

---

Definitions:

Absorption Costing

A cost accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Inventory Levels

The quantity of goods or materials a company has available at any given time, crucial for meeting customer demand and optimizing production.

Variable Costing

An accounting method in which fixed manufacturing overhead costs are not allocated to products, affecting stock valuation and profitability reporting.

Manufactured Quantity

Manufactured quantity refers to the total number of units produced by a company during a specified period.