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

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Definitions:

Work Centers

Specific locations within a manufacturing operation where specific tasks or groups of tasks are carried out.

Conversion Cost

The total cost of direct labor and manufacturing overhead to convert raw materials into finished goods.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of the production costs.

Equivalent Units

A concept used in cost accounting to express the amount of work done on partially completed goods in terms of fully completed units.