Gerard Yoder Believes That Every Time He Picks Up His

question 36

Multiple Choice

Gerard Yoder believes that every time he picks up his daughter, Penny, from school, it brings him good luck. The last time he picked her up from school, he won a lottery ticket. Today, after he received her from school, he reached his office and found out that he has been promoted. Which of the following concepts best describes Yoder's belief?

• A) affect intensity
• B) bandwagon effect
• C) illusory superiority
• D) positive bias
• E) illusory correlation

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Definitions:

Times Interest Earned Ratio

A financial ratio measuring a company's ability to meet its interest obligations based on current earnings, indicating financial stability.

Net Profit Margin Percentage

A financial metric that shows the percentage of profit a company makes for every dollar of sales, calculated by dividing net profit by total revenue.

Average Sale Period

A financial metric measuring the average time it takes for a company's inventory to turn into sales, often seen as part of inventory turnover analysis.

Price-earnings Ratio

A valuation metric that compares a company's current share price to its per-share earnings.